Global mining conglomerate Rio Tinto has bought an 8pc stakeholder in Canada’s Western Copper and Gold, through an equity investment of C$25.6mn.
Rio Tinto Canada will purchase 11,808,490 shares of Western Copper, enabling the latter to expand its Casino copper project in Canada’s Yukon territory. Western will continue to own and operate the project according to the terms of the strategic investment. It will use the proceeds for the next phase of the feasibility study and transition the mine to the development stage.
Rio Tinto will also enter into an investor rights agreement to appoint one member, one non-voting observer, and one director if its share increases to 12.5pc. The Casino project has a measured annual capacity of 182.4 mn mt of copper and indicated resources of 2bn mt. Western Copper and Gold has not disclosed production schedules yet.
($1=C$1.21)