Raiden Resources announces Joint Venture with Rio Tinto
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Raiden Resources Limited (ASX:RDN) has announced a joint venture with Rio Tinto Mining and Exploration Limited (ASX:RIO). Exploration on this agreement, initially announced on 13 March 2018, will now commence, following Rio Tinto completing its due diligence.
Here are the highlights:
Joint Venture has been formed following satisfaction of conditions set out
prior to the agreement.
- The agreement covers three of RDN’s exploration licences located in Serbia, including prospective for porphyry copper-gold and associated styles of mineralisation.
- RIO will soon start exploration on these licences with a staged earn-in to spend up to US$31.5 million (~AUD$40million), in order to earn up to a 75% project-level interest over three stages.
- The transaction validates RDN’s view of the prospectivity of these licences, and the potential to host world class mineral deposits.
The Joint Agreement covers the company’s Zapadni Majdanpek, Majdanpek Pojas and Donje Nevlje exploration licences located in Serbia.
These licences are located within the Western Tethyan Metallogenic Belt in Eastern Europe, which hosts numerous tier one copper-gold porphyry and associated mineral deposits, including recent discoveries.
Following today’s announcement, Managing Director of RDN Dusko Ljubojevic said: “The commencement of the Joint venture is the first major step in the commencement of a modern systematic exploration campaign on these priority areas which have not been evaluated in detail in the past three decades.
“This is an exciting phase for Raiden and the broader Tethyan Belt, which has been demonstrated to be among the most highly endowed and under-explored copper-gold regions globally. Concurrent with the formation of the Joint Venture, Raiden will also commence exploration on its other assets in the coming month which will provide a parallel strategy to the JV properties.”
It should be noted that RDN is in the early stages pf exploration here and investors should seek professional financial advice if considering this stock for their portfolio.
About the Joint Venture Licences
The licences are located within the prolific Western Tethyan metallogenic belt and the exploration targets are for copper-gold porphyry and related mineralisation.
The Majdanpek West and Majdanpek Pojas licenses are located within the northern section of the Timok Magmatic Complex, one of the most copper endowed districts in the entire belt.
The Donje Nevlje project is located approximately 125km south of the Timok magmatic and hosts includes copper mineralisation and hydrothermal rock alteration that could be related to a porphyry copper system. Previous explorers have defined geochemical and geophysical anomalies which to date remain untested.
The location of RIO’s joint venture licenses and RDN’s other projects in Serbia:
RDN has provided more detailed information on the joint venture licences and the company’s other projects in the relisting Prospectus dated 13 December 2017. This includes an Independent Geologists Report on RDN’s Serbian projects.
The formation of the joint venture provides a significant source of funding for exploration and will enable RDN to devote further resources to exploration and development of its other assets. Funding also enables the company to evaluate new opportunities in line with the company’s growth strategy.
As highlighted in the Prospectus, RDN intends to reallocate its existing funds to its other licences on a pro-rata basis while Rio Tinto undertakes its sole funding period on the joint venture licences.