Trek enters into Option Agreement with Rio Tinto Exploration (RTX) to explore Trek’s Jimblebar Nickel-Copper Project in the Pilbara region of Western Australia.
During an initial option period, RTX may elect to farm-in to the Project with the right to earn an 80% Joint Venture interest by sole funding A$5 million in exploration expenditure.
Upon completion of the 80% earn-in sole funding period, an 80/20 Joint Venture will be established whereby RTX will free-carry Trek until the earlier of delivery of an “Order of Magnitude” study or expenditure of a cumulative A$40 million.
This is consistent with Trek’s strategic focus on its high-priority Tambourah Lithium and Hendeka Manganese Projects in WA’s Pilbara.
RTX brings considerable financial and technical expertise to explore for magmatic nickelcopper at Jimblebar, with Trek shareholders retaining significant exposure to a potential future discovery under the agreement structure.
“We are delighted to be partnering with Rio Tinto Exploration (RTX) to advance the exploration for magmatic nickel-copper at Jimblebar, which is located in the Tier-1 Pilbara mining district of Western Australia. RTX brings significant technical and operational expertise to the table, and we are very excited to be able to collaborate with their team to generate, refine and test targets across the tenements.
This agreement allows Trek to continue to focus on our flagship Tambourah Lithium Project, where we plan to commence our maiden drill program this quarter, and continue to advance our high-grade Hendeka Manganese Project, while keeping a free-carried exposure to the nickel-copper potential at Jimblebar and allowing it to progress much quicker than would otherwise be achievable."
Derek Marshall, Trek Metals CEO