Raiden Resources Ltd. said March 13 that it signed an agreement with Rio Tinto unit Rio Tinto Mining & Exploration Ltd. for an option to earn up to a 75% joint venture interest in three of the former's exploration licenses in Serbia for US$31.5 million.
The agreement covers the copper-gold prospective Zapadni Majdanpek, Majdanpek Pojas and Donje Nevlje exploration licenses held by Raiden's wholly owned subsidiaries Kingstown Resources DOO Beograd and Skarnore Resources DOO.
Under the deal, subject to a 60-day due diligence period, Rio Tinto can earn an initial 51% participating interest by completing a US$2.5 million spend within the first three years. It may further increase its stake by 14% by completing an additional US$9 million spend, then earn a further 10% interest by spending an additional US$20 million.
Raiden said the formation of the joint venture will provide it with a significant source of funding for exploration of the respective licenses and enable it to explore and develop its other assets and evaluate new opportunities.
Raiden was previously known as Subzero Group Ltd.
