• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Base Metals Market
    Base Metals News
    Base Metals Stocks
    • Base Metals Market
    • Base Metals News
    • Base Metals Stocks
    copper investing

    Eurasian Minerals Options Arizona Copper Project to Kennecott Exploration

    Teresa Matich
    May. 04, 2015 03:35PM PST
    Base Metals Investing

    Eurasian Minerals kicked off the week by announcing it has optioned its Superior West copper project in Arizona to Kennecott Exploration. Kennecott is owned by Rio Tinto, which also owns the massive Resolution copper project in Arizona in partnership with BHP Billiton.

    Royalty and prospect generator Eurasian Minerals (TSXV:EMX) kicked off the week by announcing it has optioned it’s Superior West copper project in Arizona to Kennecott Exploration.

    Kennecott is owned by Rio Tinto (NYSE:RIO,ASX:RIO,LSE:RIO), which also owns the massive Resolution copper project in Arizona in partnership with BHP Billiton (NYSE:BHP,ASX:BHP,LSE:BLT). That project is located less than 2 kilometers away from Superior West.

    Under the terms of the agreement between Kennecott and Eurasian’s subsidiary, Bronco Creek Exploration, Kennecott may earn a 100-percent interest in Superior West for a cash payment of US$149,187 and exploration expenditures of US$5.5 million. Kennecott must also make annual option payments amounting to US$1 million before the fifth anniversary of the agreement, plus milestone payments when a preliminary economic assessment (US$500,000), prefeasibility study (US$1 million) and feasibility study (US$2.5 million) are completed and annual advanced minimum royalty (AMR) payments beginning on the first anniversary of the exercise of the option.

    Eurasian Minerals will keep a 2-percent net smelter royalty on Superior West once Kennecott exercises its option, although Kennecott can buy down 1 percent of the royalty on 14 of the project’s 680 claims, or may extinguish the need for AMR payments for a one-time payment of US$4 million.

    Overall, the news doesn’t appear to have garnered much of a reaction from the market. Eurasian’s stock was down about 5 percent on Monday to close at $0.74, with just 500 shares trading hands.

    Still, the interest in Superior West from Rio is an interesting development. As mentioned above, the project is less than 2 kilometers away from Rio and BHP’s Resolution copper project, which is set to produce as much as 1 billion pounds of copper per year.

    The Resolution project reached a major milestone last December when a key land swap bill was approved, allowing for an expansion that Rio has said is necessary for getting the most out of the project. Previously, BHP and Rio were fighting to take control of the land for 12 years, and the land swap was controversial due to environmental concerns and issues raised by local Native American communities.

    At Superior West, Kennecott will act as operator, although Eurasian Minerals will conduct work for the first year of a follow-up exploration program currently being designed by both companies. Eurasian acquired Superior West by staking prospective open ground, as per its royalty and prospect generation model. Its previous partner completed two drill holes at the project, as well as geophysical, archaeological and biological surveys.

    Certainly, copper investors will be keeping an eye out for the announcement of further exploration programs for the project.

     

    Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.

    Related reading:

    Rio Tinto and BHP to Finally Develop Massive Resolution Copper Mine

    US Senate Approval Paves the Way for Copper Projects

    lse:rionyse:rioasx:rioprefeasibility studycopper investinglse:blt
    The Conversation (0)

    Go Deeper

    AI Powered
    Copper pipes laid on top of each other in bundles.

    5 Best-performing Copper Stocks on the TSX in 2025

    A person's hand holds a piece of copper metal ore above a blurry copper-colored background.

    What's the Next US Copper Mine? 27 Copper Projects to Watch

    Latest News

    Vertex Minerals Limited Capital Raising Update

    Quarterly Activities/Appendix 5B Cash Flow Report

    Maiden Mt Boppy Open Pit Ore Reserve

    Blackstone Secures New Diamond Drill Rig to Advance Mankayan

    Scoping Study Highlights Potential of Tennant Creek Project

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Base Metals Investing Stocks

    Blackstone Minerals

     
    BSX:AU

    Osisko Metals: Pure Potential

     
    OM:CA

    Los Andes Copper

     
    LA:CA

    Questcorp Mining

     
    QQQ:CC

    Cygnus Metals

     
    CYG:CC

    Redstone Resources

     
    RDS:AU
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×