(Kitco News) - McEwen Copper, a subsidiary of McEwen Mining (NYSE:MUX, TSX: MUX) announced today that it has entered into a binding term sheet with Kennecott Exploration Company (KEX), a subsidiary of Rio Tinto, for an option to earn a 60% interest in and joint venture the Elder Creek property in Nevada by spending US$18 million.
According to the company’s statement, KEX will have the right to earn a 60% interest in Elder Creek by investing $18 million over a maximum of seven years (expenditure commitment).
The company said that KEX will be the operator of the Elder Creek project during the term of the agreement, adding that following completion of the expenditure commitment, KEX and McEwen Copper will form an unincorporated 60:40 joint venture.
The Elder Creek project consists of 577 unpatented mining claims in Humboldt and Lander counties, Nevada.
The company noted that the project is prospective for porphyry copper mineralization and well placed in a district hosting several large copper and gold mines, including Marigold, Lone Tree and Phoenix.
McEwen Copper holds 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, USA. McEwen Mining owns a 68% share of McEwen Copper.
