Titan and Hanrine Partner for Linderos Copper Project Joint Venture
TITAN MINERALS LIMITED (TTM) Share Update September 2024 Tuesday 17th
Titan and Hanrine Form Joint Venture for Linderos Copper Project
Titan Minerals Limited (ASX: TTM) has announced a significant joint venture with Hanrine Ecuadorian Exploration and Mining S.A., a subsidiary of Hancock Prospecting Pty Ltd, to develop the Linderos Copper Project in Ecuador.
Instant Summary:
- Hanrine to invest up to US$120 million to earn an 80% stake in the Linderos Copper Project.
- Initial 5% interest earned by Hanrine through a US$2 million payment.
- Preparation for a 10,000-meter drilling campaign is underway.
- Hanrine can earn up to 80% interest by achieving exploration milestones or sole funding.
Joint Venture Agreement Details
Titan Minerals Limited (Titan) and Hanrine Ecuadorian Exploration and Mining S.A. (Hanrine), a subsidiary of Hancock Prospecting Pty Ltd, have entered into a binding joint venture and earn-in agreement for the Linderos Copper Project in Ecuador. Hanrine will invest up to US$120 million to earn an 80% stake in the project.
Hanrine will initially earn a 5% interest by paying US$2 million. The company can increase its stake to 80% by achieving specific exploration milestones or by sole funding up to US$120 million. This includes completing 10 kilometers of new drilling or spending US$8 million within three years, and additional drilling or spending to reach a total of US$120 million within 15 years.
Exploration Plans
The initial 10,000-meter drilling campaign is set to begin soon, with technical site visits and logistics planning already in advanced stages. Titan's CEO, Melanie Leighton, expressed confidence in the partnership, highlighting Hanrine's technical capability and financial strength.
Project Background
The Linderos Copper Project comprises four contiguous mineral concessions covering 143 square kilometers in southern Ecuador. The project is in an early exploration stage, with surface geochemistry and geophysics indicating multiple porphyry and shallow epithermal gold systems. Previous drilling at the Copper Ridge Porphyry prospect has shown promising results, including significant intersections of copper mineralization.
In 2022, Titan drilled eight diamond holes at Copper Ridge, revealing broad zones of copper porphyry mineralization from shallow depths. An Induced Polarisation (IP) geophysical survey has also indicated a larger porphyry system with a +2km alteration footprint.
The joint venture with Hanrine is a positive development for Titan, providing significant funding and expertise to advance the Linderos Copper Project. This partnership is likely to boost investor confidence and could lead to an increase in Titan's stock price as exploration progresses.
Investor Reaction:
Analysts are likely to view this joint venture favorably, given Hanrine's strong track record and financial backing. The substantial investment and structured milestones provide a clear path for project development, which should reassure investors about the project's potential.
Conclusion:
Investors should keep an eye on the progress of the drilling campaign and subsequent exploration activities. The joint venture with Hanrine represents a significant step forward for Titan and could result in substantial returns if the exploration milestones are met. Stay tuned for further updates on the Linderos Copper Project.