TDG Gold agrees to Aurora West joint venture with Freeport in C$110 million deal
FCX•TDG Gold agreed to sell a 51% stake in Aurora West to Freeport-McMoRan Mineral Properties Canada for C$110 million. Freeport can increase its stakes through an option requiring C$80 million in exploration spending and a C$40 million cash payment to TDG.
1. Joint venture terms
TDG Gold agreed to sell 51% of Aurora West to Freeport-McMoRan Mineral Properties Canada for C$110 million. Freeport committed C$30 million within three years of closing, including C$15 million within two years.
2. Earn-in option
Freeport can increase its stakes to 75% in Aurora West JVCo and 100% in ClaimsCo through an earn-in option requiring C$80 million in exploration spending and a C$40 million cash payment to TDG. TDG retains Shasta and Baker; if Freeport exercises the option, TDG will retain 25% of Aurora West JVCo and a 2% royalty on ClaimsCo.
