- TechGen Metals (TG1) signs a binding farm-in term sheet with Rio Tinto Exploration for the Harbutt Range project in WA
- The agreement will allow the Rio Tinto subsidiary to earn an 80 per cent joint venture interest in the project by funding $3 million in exploration costs over five years
- This includes at least 3000 metres of reverse circulation or diamond drilling at the project
- TG1 says the project contains multiple favourable geophysical and geochemical targets
- Shares in TG1 last traded at 21 cents on September 2
TechGen Metals (TG1) has executed a binding farm-in term sheet over its Harbutt Range project in WA with Rio Tinto’s (RIO) exploration subsidiary.
The agreement will allow Rio Tinto Exploration to earn an 80 per cent joint venture interest in the project by funding $3 million in exploration costs over five years.
Under the terms of the deal, the Rio funding must include at least 3000 metres of reverse circulation or diamond drilling.
TechGen Managing Director Ashley Hood said the agreement would allow the company to spend its exploration funds on other upcoming drill campaigns.
“Given the experience of the Rio Tinto Exploration teams currently operating in the Paterson region, we are excited by the opportunity that this farm-in and joint venture presents to our shareholders and look forward to working with our new partners,” he said.
Rio Tinto Exploration has committed to funding a minimum of $250,000 in exploration expenditure before the end of next year.
Following this initial funding, Rio can withdraw from the agreement at any stage. If it does, it will retain no interest in the project.
TG1 said the project contained multiple favourable geophysical and geochemical targets.
Shares in TG1 last traded at 21 cents on September 2.