Canadian-based resource exploration and development company Redhawk Resources has formed a joint venture (JV) with Anglo American to develop Redhawk's Copper Creek project in San Manuel, Arizona.
Under the deal, Anglo American will own a 60% stake in the project through spending $44m over a period of five years, which will include $3m in the first year.
The JV also gives Anglo American the option to buy an additional 20% stake in the project by spending $20m on or before the seventh anniversary of the JV agreement date.
Redhawk will serve as the project operator for the first three years, following which, Anglo American will take over.
Redhawk Resources president and CEO R Joe Sandberg said: "Anglo American is a respected global mining company with ready access to experienced people, technology, and capital.
"Copper Creek currently has a significant mineral resource and the potential for expansion in numerous areas. Partnering with one of the world's largest mining companies will provide Redhawk with many advantages for the methodical exploration of the upside potential and eventual exploitation of the deposit.
"We are also very proud to be appointed as operator during the initial period of the joint venture as it is validation of the quality of the Redhawk team and the work conducted by Redhawk on this project."
The transaction, which is subject to certain conditions, is expected to be completed this month.
Image: Redhawk's Copper Creek property is located 75 miles north-east of Tucson and 15 miles north-east of San Manuel, Arizona. Photo: courtesy of Redhawk Resources.