LCL Resources Ltd. has secured a joint venture agreement with mining giant Rio Tinto, executing a binding earn-in agreement to accelerate exploration at LCL’s Ono project in Papua New Guinea.
The deal provides LCL with a significant cash injection and technical backing to target major copper-gold porphyry discoveries.
Under the terms of the agreement, Rio Tinto can earn an initial 51 per cent interest in the project by sole funding a minimum of AU$8 million in exploration expenditure, which must include a minimum of 4,000 metres of drilling.
Rio Tinto also has the option to increase its stake to 80 per cent by either spending a further AU$40 million or defining a JORC-compliant mineral resource of at least 1.25 million tonnes of contained metal on a copper-equivalent basis.
LCL Executive Chairman Chris van Wijk described the partnership as a transformational step, noting that Rio Tinto’s involvement brings world-class exploration capability and funding that a junior explorer could not achieve alone.
“Partnering with Rio Tinto brings world-class exploration capability and substantial funding to the Ono project, enabling a level of exploration activity that would not otherwise be possible for a company of our size.
“Importantly, the structure allows LCL shareholders to retain significant exposure to exploration success and any potential discoveries funded by Rio Tinto.”
The Ono project is situated within the Owen Stanley Metamorphic Belt, the same geological province hosting the world-class Wafi-Golpu project.
The project’s appeal lies in its location on a cross-arc lineament, deep-penetrating structures often interpreted as focal points for metal-bearing magma.
Initial work at Ono has already identified high-grade gold and silver results, alongside an existing gold skarn resource at Kusi of 18 million tonnes at 1.42 grams per tonne of gold.
Rio Tinto has collaborated with LCL for over a year on regional prospectivity before committing to the farm-in.
During the initial phase, LCL will manage the project and receive a 10 per cent management fee, though Rio Tinto retains the right to take over operatorship at its election.
This partnership positions the Ono project as a high-priority exploration target within the copper-rich PNG landscape.
