CA - McEwen Mining agrees to JV option in Nevada project with Rio Tinto

McEwen Mining ( NYSE: MUX ) said Tuesday it signed a binding term sheet for an option to become a majority joint venture partner with Rio Tinto's ( NYSE: RIO ) Kennecott Exploration subsidiary in the Elder Creek project in Nevada.

To exercise the option, McEwen ( MUX ) would have pay $18M, after which the two companies would form an unincorporated joint venture where McEwen would be the largest partner and Kennecott would be the project operator.

The Elder Creek project consists of 577 unpatented mining claims in Nevada, which is prospective for porphyry copper mineralization and well placed in a district hosting several large copper and gold mines, including Marigold, Lone Tree and PHoenix.

McEwen ( MUX ) holds a 1.25% net smelter return royalty on all the claims that comprise the Elder Creek property.

McEwen Mining ( MUX ) recently said Nuton Technologies agreed to invest $25M in the company's McEwen Copper subsidiary .

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