Rio Tinto will continue cooperation with Canadian junior mining company Reservoir Minerals on their JV copper gold project Tilva in east Serbia.
Reservoir Minerals Inc reported that its subsidiaries Tilva (BVI) Inc., and Global Reservoir Minerals (BVI) Inc., have been notified by Rio Tinto Mining & Exploration Limited, that the condition precedent has been met relating to the earn-in and joint venture agreement (“Agreement”) signed between Rio Tinto and Reservoir.
Under the terms of the Agreement, Rio Tinto has the option to earn in stages up to a 75% interest in Reservoir’s four wholly-owned exploration permits in the Timok Magmatic Complex; Nikolicevo, Kraljevica, Coka Kupjatra and Tilva Njagra in Serbia (“Tilva Project”), by sole funding project expenditures of up to US$75 million.
Simon Ingram, President and CEO of Reservoir Minerals Inc., commented: “Reservoir is pleased to be continuing work on the four exploration permits of the Tilva Project, which will be solely funded by Rio Tinto via this Joint Venture during the sole funding period. The Timok belt has excellent exploration potential for large-scale copper-gold deposits and we look forward to building on Reservoir’s experience and success in this belt with Rio Tinto.”
- Rio Tinto will reimburse Reservoir’s costs from the drilling started in September 2015, up to a maximum of US$500,000, which will form part of the Stage 1 earn-in expenditure.
- A Management Committee has been formed comprising of 2 representatives from each of Rio Tinto and Reservoir, which will meet to approve work programs and budgets on a quarterly basis, with quarterly cash calls being made in advance.
- Reservoir will be the Manager of the Tilva Project until such time as Rio Tinto exercises its right to assume the role.
- The focus of initial work will be data compilation, geological, geochemical, geophysical and structural modelling in order to prioritize targets for fieldwork and the next round of drilling.