Rio Tinto has sole funded over $11 million in exploration expenditure on Antipa Minerals’ Citadel project in Western Australia, culminating in the formation of a joint venture (JV) between the two companies.
Rio Tinto has now earned 51 per cent of interest in the JV and can elect to increase this to 65 per cent by the end of January.
This would require Rio Tinto to sole fund an additional $14 million of exploration expenditure within three years.
Rio Tinto, which is now the operator of the Citadel JV, has allocated a budget of $3.4 million for Citadel’s exploration during the 2019 calendar year.
This JV hosts a global mineral resource of 63.8 million tonnes at 0.8 grams a tonne of gold and 0.2 per cent of copper for 1.6 million ounces of gold and 127,000 tonnes of copper.
Citadel is located in the Paterson Province where Rio Tinto also made its Winu copper discovery. It comprises a 1330 square kilometres tenement package.
Should Antipa elect not to contribute to expenditure, Rio Tinto can raise its interest in Citadel further and earn up to a 75 per cent stake.
Rio Tinto would accordingly be required to sole fund a further $35 million within a further three years.