Rio Tinto becomes Western Copper and Gold's strategic partner
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.