Quadra FNX Mining, Sumitomo Metal Mining and Sumitomo Corporation have formed a joint venture (JV) to develop the Sierra Gorda copper-molybdenum project in Chile.

Sumitomo will hold a 45% interest in the JV and Quadra FNX will hold the remaining 55% interest.

Quadra FNX will conduct mining activities through its subsidiary Sierra Gorda SCM (SGJV).

Sumitomo has contributed $360m to SGJV as part of its initial $724m funding and Quadra FNX was reimbursed $167m for amounts advanced by it to SGJV from May 2011 to closing.

Currently Quadra FNX has a cash balance of about $1.1bn, excluding its 55% share of cash in SGJV.