Sydney, Australia - 18 April 2024: Copper-gold explorer and developer, Titan Minerals Limited (ASX:TTM) is thrilled to announce a significant advancement in its strategic partnership initiatives, having executed a letter of offer to form a joint venture partnership with Hanrine Ecuadorian Exploration and Mining S.A. (Hanrine), a wholly owned subsidiary of Hancock Prospecting Pty Ltd. This collaboration aims to further explore and develop the Linderos Copper Project in Ecuador, representing a pivotal step towards realising the project's potential as a world-class copper exploration venture.
Under the terms of the proposed joint venture, Hanrine will have the opportunity to acquire up to an 80% ownership interest in the Linderos Project through a structured earn-in arrangement valued at up to US$120 million. The key milestones of the agreement include:
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An initial payment of US$2 million to Titan for a 5% stake.
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Further exploration efforts, including 10,000 meters of drilling or an additional expenditure of US$8 million, to acquire an additional 25% interest.
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An additional 15,000 meters of drilling or US$12 million in expenditure to increase Hanrine’s stake to 51%, complemented by an extra US$1 million payment to Titan.
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Upon a Decision to Mine or a cumulative investment of US$120 million, Hanrine will secure an additional 29% interest, culminating in an 80% total ownership.
The formalisation of this joint venture is subject to the execution of binding documents and the completion of due diligence by Hanrine, expected by April 18, 2024.
Commenting on the proposed earn-in and joint venture Titan’s CEO, Melanie Leighton, said:
“This Joint Venture (JV) deal is an excellent outcome for Titan shareholders, with Hanrine set to spend up to US$120 million (AU$180 million) to earn 80% in the Linderos Project.
“We are very pleased to be partnering with Hancock’s Ecuadorian subsidiary company, Hanrine, who has both the balance sheet and capability to fully explore and develop the Linderos Project. The agreement represents a fantastic endorsement of our belief in the Linderos Project’s potential to host a large-scale copper porphyry system.
“Hanrine clearly see the opportunity for large-scale copper, both at the Linderos Copper Project, and in Ecuador, an emerging mining jurisdiction, having made considerable investment into exploration in Ecuador over recent years.”
The Linderos Copper Project covers an area of 143 square kilometers in southern Ecuador and is fully permitted for exploration and small-scale mining. The project has shown promise with multiple porphyry centers identified and previous drilling confirming extensive copper porphyry mineralization at shallow depths. Recent geophysical surveys have revealed a larger system than previously understood, underscoring the site's potential.
This partnership with Hanrine underscores Titan's commitment to leveraging strategic collaborations to unlock substantial value from its mining assets and strengthen its position in the global mining industry.
About us:
Titan Minerals is focussed on discovering and developing Tier One copper-gold deposits in Ecuador's southern Andean copper-gold belt.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au