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Titan Minerals Ltd (ASX:TTM) has entered into a joint venture and earn-in agreement with Hanrine Ecuadorian Exploration and Mining SA, a wholly owned subsidiary of Hancock Prospecting Pty Ltd, concerning the Linderos Copper Project in Ecuador.
As part of this arrangement, Hanrine has the opportunity to acquire up to an 80% interest in the project through meeting specific milestones or by contributing up to $120 million. The agreement includes an initial payment, with a portion already received and the remainder pending. The immediate focus for Hanrine involves financing a 10,000-meter drilling campaign, which is currently in the advanced planning stages.
Under the terms of the agreement, Hanrine will initially secure a 5% interest in the project. This stake can increase to 51% through the completion of up to 25 kilometers of new drilling over three stages. To acquire the remaining 29% interest, Hanrine will need to either decide to proceed with mining or fulfill the total investment requirement of $120 million within 15 years.
During the earn-in phase, Titan Minerals will not be required to contribute financially. Should Titan’s ownership dilute below 10%, its remaining stake will convert to a 2.7% net smelter royalty.
The Linderos Copper Project spans 143 square kilometers in southern Ecuador and has demonstrated promising results from surface geochemistry and geophysical surveys. These findings suggest significant potential for both copper porphyry and epithermal gold systems. Initial drilling at the Copper Ridge Porphyry prospect has revealed notable mineralization, with significant intersections observed from shallow depths.
Melanie Leighton, CEO of Titan Minerals, highlighted the importance of this agreement, stating that it represents a strong endorsement of the project's potential. The joint venture and earn-in agreement are viewed as affirmations of the Linderos Copper Project’s promise as an early-stage copper-gold discovery.
The partnership with Hanrine is anticipated to positively impact the local Ecuadorian economy, alongside advancing exploration efforts. Hanrine’s established presence in-country, along with its technical expertise and financial resources, is expected to facilitate successful exploration and development. Titan Minerals is poised to provide further updates on logistical and exploration activities as preparations for the initial 10,000-meter drilling campaign progress.
