- Lion Copper and Gold Corp. (LEO) receives approval for an earn-in agreement with Rio Tinto America Inc
- Rio Tinto will have the option to earn up to a 75 per cent interest in Lion’s Nevada assets
- Rio Tinto will evaluate the potential commercial deployment of its NutonTM at the site
- NutonTM uses technologies to deliver greater copper recovery from mined ore
- Lion Copper and Gold Corp. (LEO) is unchanged trading at $0.08 per share as of 2:53 p.m. ET
Lion Copper and Gold Corp. (LEO) has received TSXV approval for an earn-in agreement with Rio Tinto America Inc.
Under the agreement, Rio Tinto will have the option to earn up to a 75 per cent interest in the company’s Nevada assets. This includes the historic Yerington mine, greenfield MacArthur Project, Wassuk property, the Bear deposit, and associated water rights.
Additionally, Rio Tinto will evaluate the potential commercial deployment of its NutonTM technologies at the site.
NutonTM uses technologies to deliver greater copper recovery from mined ore and access new sources of copper such as low-grade sulphide resources and reprocessing of stockpiles and mineralized waste.
After a feasibility study, Rio Tinto and Lion CG will decide whether or not to create an investment vehicle into which the mining assets will be transferred. Rio Tinto would hold no less than a 65 per cent interest in the investment vehicle.
If Rio Tinto elects not to create the investment vehicle, then Lion CG will give Rio Tinto a 1.50 per cent net smelter return royalty (NSR) on the mining assets.
Rio Tinto may elect to fund up to US$60 million of Lion CG’s project financing costs in exchange for a 10 per cent increase in Rio Tinto’s ownership percentage.
Rio Tinto may fund an additional US$40 million of Lion CG’s project financing costs in exchange for an additional 5.00 per cent increase in ownership percentage.
Lion Copper and Gold Corp. (LEO) is unchanged trading at $0.08 per share as of 2:53 p.m. ET.