Rio Tinto and Sipa Resources have begun work under a farm-in and joint-venture agreement covering Sipa’s Kitgum-Pader base metals project in northern Uganda, including the Akelikongo nickel-copper discovery. Rio Tinto can earn up to a 75% interest in the project by spending $57 million to finance three stages of exploration.
Stage 1 calls Rio Tinto to contribute $12 million within five years, including a minimum of $2 million in the first 18 months, to earn a 51% interest in the project. Stage 2 would see an additional $15 million of exploration expenditures by Rio Tinto within a further three-year period to earn a 65% interest. Stage 3 provides for an additional $30 million of exploration expenditures or declaration of a JORC-compliant resource of at least 250,000 metric tons (mt) of contained nickel or nickel equivalents within a further three-year period for Rio Tinto to earn a 75% interest.
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