Rio Tinto signs exploration earn-in for LCL’s Liamu project
Rio Tinto and LCL Resources signed binding terms for exploration at the Liamu copper-gold project in Papua New Guinea. Rio can earn an initial 51 per cent through at least 6 million Australian dollars of exploration spending over five years, with a route to 80 per cent. LCL will manage operations, while completion requires ministerial approval and licence registration.
Economics & Markets··Evening
Exploration spending can earn an initial 51 per cent
Rio Tinto and LCL Resources signed binding terms for an exploration earn-in at the Liamu copper-gold project in Papua New Guinea. Rio can earn up to 80 per cent of the project if it meets the agreement’s conditions. LCL will manage the work.[1], [2]
The first stage requires Rio to fund at least A$6 million of exploration over five years, including 3,000 metres of drilling, to earn 51 per cent. LCL can receive a management fee of up to 10 per cent of exploration expenditure.[1]
Two routes to the larger interest
Rio can increase its interest to 80 per cent by spending another A$40 million. The alternative is a mineral resource estimate containing at least 1 million tonnes of copper or copper equivalent, together with a completed scoping study.[1]
Ministerial approval remains necessary
Completion requires ministerial approval and registration against exploration licence EL2432. The termination deadline is September 30, 2027 if those conditions remain unmet. Before withdrawing, Rio must spend at least A$200,000 within 12 months of obtaining land access. Liamu follows the companies’ Ono agreement announced on March 23.[1]
