Make Kitco Your Homepage

Rio Tinto becomes Western Copper and Gold's strategic partner

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Western Copper and Gold (TSX: WRN) (NYSE American: WRN) announced Monday a C$25.6 million strategic investment by Rio Tinto Canada.

Rio Tinto will purchase 11,808,490 common shares at a price of C$2.17 per share for aggregate gross proceeds of approximately C$25.6 million, resulting in Rio Tinto owning approximately 8.0% of Western's outstanding common shares.

Funds will be used to advance Western's Casino project, which is located in the Yukon.

"The strategic investment [will] fund specific areas of study, which will form part of the feasibility study and permitting with the aim of progressing to a development phase for the Casino Project. The investment represents an opportunity for Rio Tinto to better understand the potential of the Casino Project," said Western Copper and Gold in a news release.

A 2013 feasibility study assesses the Casino of initially producing 234,000 tpa copper equivalent with a 22-year mine life.

Copper prices have been on a tear this year, hitting an all-time a week ago of $10,747.50 on the London Metal Exchange.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.