TDG Gold has signed a binding joint venture implementation and purchase agreement under which Freeport-McMoRan will acquire an initial 51 percent interest in the Aurora West lands in British Columbia for a cash payment of 110 million Canadian dollars, with TDG retaining 49 percent. The project, prospective for high-grade porphyry style gold, copper and silver mineralisation, will be held through two newly incorporated British Columbia joint venture companies, and the deal excludes TDG’s Shasta and Baker properties.
Freeport has also committed to spend 80 million Canadian dollars on exploration, including 30 million within the first three years after closing, and holds earn-in options to lift its interest to 75 percent in one joint venture company and to 100 percent in the other. TDG will not be required to contribute funding during the earn-in period and retains a 2 percent net smelter return royalty over two specified mineral claims.