Hancock Prospecting Secures 51% Stake in Ecuador’s Linderos Copper Project After Surpassing $20 Million Investment Milestone

Hanrine’s Accelerated Earn-In Highlights Strong Progress at Linderos Copper Project

On 21 July 2026, Titan Minerals announced that Hanrine, Hancock Prospecting’s exploration and mining subsidiary, successfully met Milestone 3 of the Linderos Copper Project joint venture, earning a 51% interest. Achieving the US$20 million expenditure commitment in under two years significantly outpaces the seven-year timeframe permitted under the agreement, marking a major advancement in the project’s development.

Located in Ecuador, the Linderos Copper Project is Titan Minerals’ flagship exploration asset. The joint venture, established in September 2024, tasks Hanrine with fully funding and managing exploration activities while earning ownership through milestone completions. The rapid completion of Milestone 3 demonstrates Hanrine’s operational efficiency and strong commitment to advancing exploration across the tenement.

Diamond Drilling Confirms Extensive Porphyry Copper System at Copper Ridge Prospect

Hanrine’s drilling program has validated a significant porphyry copper system at Linderos, with mineralisation extending over one kilometre laterally and to depths beyond one kilometre. The copper mineralisation is hosted within a potassic altered diorite porphyry unit, a key indicator of copper-rich porphyry systems in the region.

The update includes results from recent drilling at the Copper Ridge prospect, where Hanrine has completed 18 diamond drill holes totaling about 17,800 metres since November 2024. Combined with earlier drilling at Copper Ridge and Meseta prospects, the total dataset now comprises 45 holes for roughly 23,920 metres, providing a strong foundation to evaluate mineralisation across Linderos.

High-Grade Copper Zones Remain Open for Expansion at Depth and Laterally

Importantly, the latest drilling indicates that higher-grade copper zones at Copper Ridge remain open both laterally and at depth. These untested extensions suggest potential for future drilling campaigns to expand the known mineralisation footprint. This is a significant consideration for investors assessing the long-term exploration upside at Linderos.

Open mineralisation at depth is common in porphyry copper systems, where ore bodies often extend well below current drill limits. The presence of potassic alteration, typically associated with copper-enriched zones, suggests that deeper and lateral drilling could encounter additional high-grade mineralisation, enhancing the project’s value.

Joint Venture Structure Maintains Upside for Titan Minerals Shareholders

Under the joint venture, Titan Minerals retains a 49% interest while Hanrine holds 51%. Titan remains free-carried, with Hanrine funding all exploration and development until Milestone 4 is reached. This structure allows Titan shareholders to benefit from Linderos’ upside without ongoing operational costs, a favorable position for a company with limited cash flow.

Milestone 4 requires Hanrine to either reach a decision to mine or spend a total of US$120 million, whichever occurs first, within a 15-year limit. Given Hanrine’s accelerated progress to Milestone 3, the company appears on track to advance toward Milestone 4 ahead of schedule. Investors will be watching for updates on plans to progress Linderos toward mine development.

Financial Milestones Trigger Payments to Titan Minerals

Completion of Milestone 3 triggers a US$1 million payment from Hanrine to Titan upon transfer of the 51% ownership. Administrative steps to finalize this transfer are underway, with the payment expected soon. This represents a return of capital to Titan shareholders and recognition of Titan’s early exploration efforts.

Previously, Milestone 1 triggered a US$2 million payment to Titan. Together, these payments total US$3 million, partially offsetting Titan’s initial exploration expenditures. Completion of Milestone 4 will mark the end of the free-carry arrangement and confirm the project’s viability.

Exploration Program and Future Drilling Prospects

Hanrine’s two-phase diamond drilling program included a 10,000-metre requirement for Milestone 2, now completed. Milestone 3 required either 25,000 metres drilled or US$20 million spent; Hanrine opted to meet the expenditure target, completing approximately 17,800 metres alongside reconnaissance exploration.

Reconnaissance efforts have identified additional prospects beyond Copper Ridge and Meseta, involving geochemical sampling, mapping, and geophysical surveys to pinpoint new drill targets. These targets may be pursued in future drilling phases, contingent on Milestone 4 progress and budget decisions.

Copper Equivalent Calculations and Commodity Price Assumptions

The reported drilling results use copper equivalent calculations to unify multi-metal assay results into copper percentage terms. Titan Minerals applies commodity price assumptions of US$5.00/lb copper, US$3,500/oz gold, US$20/lb molybdenum, and US$50/oz silver, reflecting relevant market and recovery conditions.

Recovery assumptions include 85% for copper, 65% for gold and silver, and 80% for molybdenum, based on comparable deposits. Titan affirms that all metals included have reasonable recovery potential. However, investors should consider that actual prices and recoveries may vary from these assumptions.

Geological Context and Porphyry System Features

Linderos is interpreted as a porphyry copper system, characterised by disseminated copper mineralisation within intrusive igneous rocks and distinct alteration zones. The potassic altered diorite porphyry host rock typically marks the highest copper concentration areas, often extending to significant depths.

Porphyry copper deposits are globally significant, often containing hundreds of millions of tonnes of mineralised rock with grades from 0.3% to 1.0% copper equivalent. The large-scale mineralisation at Linderos, extending over one kilometre laterally and vertically, aligns with major porphyry systems. The open potassic alteration at depth suggests further mineralisation remains to be delineated.

Operational Efficiency and Hancock Prospecting’s Expertise

Hancock Prospecting, a leading Australian private mining company, is known for operational excellence in emerging jurisdictions. Hanrine’s rapid completion of Milestone 3 within two years highlights its capability and effective capital deployment. Titan Minerals CEO Melanie Leighton praised Hanrine’s achievement, calling it "a remarkable achievement and testament to their ability to operate in emerging mining jurisdictions such as Ecuador."

Ecuador’s mining environment presents unique challenges and opportunities. Hanrine’s swift progress indicates strong operational and administrative systems for navigating local regulations and community engagement. Hancock Prospecting’s continued funding through Milestone 4 reflects confidence in Linderos’ long-term potential.

Next Steps Toward Mine Development Decision

With Milestone 3 complete, Milestone 4 remains as the final earn-in step, requiring Hanrine to either decide to mine or spend US$120 million within 15 years. Having spent about US$20 million to date, Hanrine faces an additional US$100 million investment or a formal mine decision to fulfill Milestone 4.

Advancing to Milestone 4 will likely involve expanded drilling, feasibility studies, and engineering work to support a mining decision. The accelerated pace of earlier milestones suggests Hanrine may maintain momentum, though the larger scale and complexity of Milestone 4 introduce timing uncertainties. Market participants will monitor announcements on development plans and timelines for Linderos.