Mining News
ArcWest options its Todd Creek copper-gold project to Freeport-McMoRan
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(Kitco News) - ArcWest Exploration (TSXV: AWX) announced today that it has entered into an earn-in agreement with Freeport-McMoRan Mineral Properties Canada ("Freeport") to advance ArcWest's Todd Creek copper-gold project, located in BC's Golden Triangle.
The company said that under the terms of the earn-in agreement, Freeport has a two-stage option to earn up to an 80% ownership interest in the Todd Creek project over up to a 10-year period.
To earn an initial 51% interest, Freeport is required to fund CAD $20 million of work expenditures over a 5-year period and make staged cash payments to ArcWest totaling CAD $900,000. ArcWest will be the operator during the initial earn-in period.
According to a company press release, upon Freeport earning such 51% interest, it can elect, at its sole discretion, to earn an additional 29% ownership interest in the Todd Creek project (for a total 80% interest) by sole funding a further CAD $30 million within the following five years and make staged cash payments to ArcWest totaling CAD $750,000.
“Once Freeport has finalized its earned ownership interest at either the 51% or 80% level, each party will be responsible for funding its pro rata share of project costs on a 51:49 or 80:20 basis,” the company added.
ArcWest's 100% owned Todd Creek project adjoins Newcrest Mining's Brucejack mine property. The Todd Creek project is also situated approximately 40 km southeast of Seabridge Gold's giant KSM-Iron Cap porphyry Cu-Au deposits and Tudor Gold's Treaty Creek Au-Ag-Cu project.
President and CEO Tyler Ruks commented, "ArcWest looks forward to advancing our Todd Creek project in partnership with Freeport, one of the world's largest copper miners and a team with a track record of global copper-gold discoveries that have proceeded to mine development.
“ArcWest's Todd Creek project is host to one of the largest underexplored copper-gold systems in BC's Golden Triangle, and Freeport's endorsement of the project is a testament to its potential for hosting a world class copper-gold deposit. ArcWest is in discussions with multiple mining companies regarding potential earn-in agreements for our additional copper-gold projects."
ArcWest Exploration is a project generator focused on porphyry copper-gold exploration opportunities throughout western North America. The company is in possession of seven 100% owned copper-gold projects throughout BC's premier porphyry copper-gold districts.
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