Rio Tinto’s Kennecott Grants Mogotes JV Option on Montana Copper Cliff with $56m Earn-In
Rio Tinto’s Kennecott Exploration granted Mogotes an option-to-joint-venture on the Copper Cliff Project in Montana, requiring $4m in year one and $12m by year three to earn 51%. Mogotes can boost its stake to 60% by investing $56m by year six under the earn-in terms.
1. Option-to-JV Agreement
Rio Tinto’s Kennecott Exploration has signed an option-to-joint-venture agreement with Mogotes Metals for the Copper Cliff Project in Montana, giving Mogotes the right to earn a controlling interest through staged exploration funding.
2. Earn-In Investment Schedule
Under the deal Mogotes must invest a minimum of $4m in year one and $12m by year three to secure a 51% stake, with an option to increase to 60% by spending a total of $56m by year six.
3. Copper Cliff Project Background
The project covers patented and unpatented claims in the Garnet Range, near historic Copper Cliff mining areas that produced over 110,000lb of copper, 260oz of gold and 570oz of silver, and benefits from Rio Tinto’s 32,000m drill database.
4. Impact on Rio Tinto
The agreement accelerates exploration without upfront capital from Kennecott, potentially expanding the porphyry mineralisation footprint while retaining a 40% to 49% interest as Mogotes funds further drilling.