Nov 18 (Reuters) - Australia’s Alderan Resources said on Monday that its unit had partnered with Kennecott Exploration Company, a member company of the Rio Tinto Group , to help fund the Alderan’s Frisco Project in Utah, United States.
Under the terms of the agreement, Kennecott can spend up to $30 million to earn up to a 70% stake in the project over three stages and establish a joint venture, acting as its manager.
The partnership with the U.S.-based unit of Rio would help Alderan sufficiently fund the project and also enable exploration opportunities at a much lower cost, the company said.
The Frisco project is a mining site that includes multiple historic mines with deposits of copper, gold, silver and zinc.
The partnership comes days after Rio Tinto came to the aid of Energy Resources of Australia Ltd, which has been desperately seeking funds to close and rehabilitate a controversial uranium mine. (Reporting by Shreya Mariam Job in Bengaluru; Editing by Daniel Wallis)