Titan Minerals has made a letter of offer for a joint venture with Hancock Prospecting unit Hanrine Ecuadorian Exploration and Mining for the Linderos Copper Project in Ecuador.

As per the term sheet, Hanrine can acquire up to an 80% ownership stake in the Linderos project by investing up to $120m.

The Linderos Copper Project, spanning 143km² in southern Ecuador, is an early-stage exploration venture with evidence of multiple porphyry centres.

Titan has completed a maiden drilling campaign, confirming broad zones of copper porphyry mineralisation. The project is fully permitted for exploration and small-scale mining.

Under the proposed terms, Hanrine will make an initial payment of $2m to Titan to earn a 5% stake. Subsequent investments and drilling milestones could increase Hanrine’s interest to 51%, with a further $1m payment to Titan.

Ultimately, a decision to mine or a total expenditure of $120m will see Hanrine’s stake rise to 80%.

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Titan will be free carried during the earn-in period and may choose to contribute equity pro rata or dilute its interest thereafter.

If Titan’s stake falls to 10% or less, it will convert to a 2.7% net smelter royalty. Both parties will have a first right of refusal over each other’s interest in the project.

Titan CEO Melanie Leighton said: “The agreement represents a fantastic endorsement of our belief in the Linderos Project’s potential to host a large-scale copper porphyry system.

“Hanrine clearly see the opportunity for large-scale copper, both at the Linderos Copper Project, and in Ecuador, an emerging mining jurisdiction, having made considerable investment into exploration in Ecuador over recent years.”

This transaction is contingent on the execution of formal binding documents and the completion of Hanrine’s due diligence.

The Linderos Project comprises four contiguous concessions.