Hanrine Ecuadorian Exploration and Mining has formalized a joint venture and earn-in agreement with Titan Minerals to acquire a stake in Titan’s Linderos Copper Project located in Ecuador. Hanrine, a wholly-owned subsidiary of Australian mining magnate Gina Rinehart’s Hancock Prospecting, is set to acquire an initial 5% interest in the project. This initial stake will be secured through an investment of $2.01 million (A$2.97 million) within 30 days of the agreement’s execution.

The agreement provides Hanrine with the opportunity to increase its stake in the Linderos project up to 80%. This can be achieved either by funding up to $120 million or by making a decision to proceed with mining operations within a 15-year timeframe. During the earn-in phase, Titan Minerals will be free-carried, meaning they will not be required to contribute further financial resources until their holding falls below 10%. At that juncture, Titan’s stake will be converted into a 2.7% net smelter royalty, ensuring continued financial benefit from the project.

The Linderos Copper Project spans 143 square kilometers in southern Ecuador and is currently in the early exploration stages. The project area has shown significant potential for hosting multiple porphyry systems as well as shallow epithermal gold systems. Notably, the Copper Ridge Porphyry prospect has demonstrated significant copper and molybdenum anomalism, with mineralization present in a diorite porphyry. In 2022, Titan conducted drilling activities involving eight diamond drill holes totaling over 3,700 meters at Copper Ridge, revealing broad zones of copper porphyry mineralization starting from relatively shallow depths.

Preparation for an extensive 10,000-meter drilling campaign at Linderos is currently underway. Technical site visits have been completed, and logistical planning is in progress to support upcoming drilling and exploration efforts. Melanie Leighton, CEO of Titan Minerals, highlighted the progress of discussions with Hanrine, expressing optimism about the partnership. Leighton noted, “We are advanced in our technical discussions with Hanrine, who are ready to commence exploration activities at the Linderos Copper Project. The first priority will be expanding the camp to ensure seamless and efficient operations once drilling starts.”

Leighton further emphasized the benefits of the partnership, stating, “We are pleased to collaborate with Hanrine, which has a well-established team in Ecuador and the necessary technical expertise and financial capacity. This collaboration will not only advance our exploration efforts but also contribute positively to the Ecuadorian economy.” This agreement follows Titan’s announcement in April 2024 regarding the joint venture offer with Hanrine for the Linderos project, setting the stage for significant development in the region.