(RTTNews) – First Quantum Minerals agreed to acquire a 55% stake in the La Granja copper project in Peru from Rio Tinto for $105 million.
First Quantum will commit to further invest up to $546 million into their joint venture to sole fund capital and operational costs to take the project through a feasibility study and toward development, the companies said in a statement.
The transaction is expected to complete by the end of third quarter of 2023.
La Granja is a complex orebody located at high altitude in Cajamara, Northern Peru, that has the potential to be a large, long-life operation, with a published Indicated and Inferred Mineral Resource totalling 4.32 billion tonnes at 0.51 percent copper.
Rio Tinto acquired the La Granja Project from the Government of Peru in 2006 and has since carried out an extensive drilling program that significantly expanded the declared resource and understanding of the orebody, and established partnerships with host communities, local and national governments.
In addition, Rio Tinto and First Quantum Minerals stated that they have entered into a memorandum of understanding for strategic cooperation globally in copper and other base metals exploration and project development, as well as for sharing information and technical know-how around best-in-class mining, processing, and decarbonization.
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