Antipa Minerals Limited (ASX: AZY) has confirmed that that Rio Tinto has earned a 51% interest in the Citadel Project in the prospective Paterson Province in northern Western Australia.
The global resource giant has taken up operatorship and the majority interest in Citadel by sole funding $11 million of exploration expenditure and a joint venture between Rio Tinto and Antipa has now been formed.
The Citadel Project comprises a 1,330 sq, km tenement package located 80km north of Newcrest’s Telfer gold‐copper‐silver mine and 5km east of Rio Tinto’s Winu copper‐gold‐silver deposit.
The Citadel Project hosts a global Mineral Resource of 63.8Mt at 0.8g/t gold and 0.2% copper for 1.6Moz gold and 127kt copper.
In accordance with the terms of the Citadel Project Farm‐in Agreement, Rio Tinto now has until 30 January 2020 to elect whether to sole fund an additional $14 million of exploration expenditure within three years to increase its interest in the Citadel Joint Venture to 65%.
Subject to Rio Tinto earning the 65% interest and Antipa then not electing to contribute to expenditure to maintain its 65% interest, Rio Tinto also has the ability to earn up to a 75% interest in the Citadel Joint Venture by sole funding a further $35 million within a further three years.