Northisle Copper & Gold Inc. said Feb. 26 that it entered into a joint venture agreement with Freeport-McMoRan Inc. unit Freeport-McMoRan Mineral Properties Canada Inc. on the Pemberton Hills copper property in British Columbia.

Under the terms, Freeport may earn an initial 49% interest by paying C$50,000 and funding C$4 million in exploration expenditures over three years. Northisle will be the project operator during this period.

Upon completion of the first option, the companies will form a joint venture company to operate the project.

Freeport will then have a one-time right to acquire an additional 16% stake in the project by funding a further C$20 million in expenditures over four years.

If Freeport elects to proceed with the second option and fails to complete the required expenditures, its interest in Pemberton Hills will revert to 49%.

Should either party's interest in the joint venture reduce to below 10%, the diluted party will be granted a 2% net smelter returns royalty. The royalty is subject to a buydown provision that allows for the royalty to be reduced to 1% for a C$2 million payment.