Chief Consolidated has signed an agreement with Kennecott Exploration, a subsidiary of Rio Tinto, to mine for copper, gold and molybdenum in the former's Big Hill project located in Utah, US.
The agreement may take several months to complete but according to the agreement, Kennecott will earn 51% interest in the project by completing a pre-feasibility study or incurring $20m in costs, whichever comes first.
After completion, Kennecott would get an additional 4% interest in the project once the investment committee of Rio Tinto accepts the study.
The agreement excludes Chief Consolidated's other properties in the Tintic District that it proposes to develop, including the Trixie Mine, the Ball Park target and the Burgin Mine Complex, along with other former producing mines.
The Big Hill project focuses on developing a porphyry copper-gold-molybdenum target owned by Chief Consolidated.