MetalCORP, Kennecott on GUP diamond project

MetalCORP Limited signed a Letter of Intent with Kennecott Canada Exploration Inc. (Kennecott), an indirect wholly owned subsidiary of Rio Tinto.

Once a formal agreement has been signed, Kennecott has the right to earn a 51% interest in MetalCORP’s GUP Diamond Project by making cash payments of $375,000 and incurring expenditures of $4,000,000 over four years.

A cash payment of $55,000 is due on signing and a firm commitment of $350,000 is to be spent in the first fifteen months. Kennecott may earn an additional 24% by spending a minimum of $700,000 per year starting in year five and by making cash payments to MetalCORP of $50,000 starting in year five, increasing by 10% per year, until a feasibility study is delivered to MetalCORP.

The agreement will give Kennecott the right to explore for, develop and mine diamonds and leave MetalCORP with the right to explore for, develop and mine all other base metals and precious metals on the Property.

MetalCORP is excited about partnering with such an important and well respected world leader in the mining industry. With their technical expertise, Rio Tinto has shown an exceptional track record of exploration success in the last few years, said, Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer.

The Rio Tinto group recognizes the importance of exploration has a contributor to their growth. Their financial and technical resources will be a significant asset to the exploration and development of the GUP diamond project, he said.

Story link: MetalCORP, Kennecott on GUP diamond project