McEwen Copper Options Elder Creek to Rio Tinto

McEwen Copper Inc., a subsidiary of McEwen Mining Inc., has entered into a binding term sheet with Kennecott Exploration Co. (KEX), a subsidiary of Rio Tinto, for an option to earn a 60% interest in and joint venture the Elder Creek property in Nevada by spending $18 million over a maximum of seven years.

The Elder Creek project consists of 577 unpatented mining claims in Humboldt and Lander counties, Nevada. It is prospective for porphyry copper mineralization and well placed in a district hosting several large copper and gold mines, including Marigold, Lone Tree and Phoenix. McEwen Mining Inc. holds a 1.25% net smelter return (NSR) royalty on all the claims that comprise the Elder Creek property.

KEX will be the operator of the Elder Creek project during the term of the agreement. Following completion of the expenditure commitment, KEX and McEwen Copper will form an unincorporated 60:40 joint venture.

As featured in Womp 2022 Vol 09 -