Eurasian Minerals Options Superior West Copper Project to Rio Tinto’s Kennecott

Eurasian Minerals (TSXV:EMX) subsidiary Bronco Creek Exploration has signed an exploration and option to purchase agreement with Kennecott Exploration company, part of the Rio Tinto Group, for the Superior West porphyry copper project.

As quoted in the press release:

Pursuant to the Agreement, Kennecott can earn a 100% interest in the project by making a cash payment upon execution of the Agreement of US$149,187, and thereafter completing US$5,500,000 in exploration expenditures and paying annual option payments totaling US$1,000,000 before the fifth anniversary of the Agreement.

Upon exercise of the option EMX will retain a 2% NSR royalty on the properties. Kennecott has the right to buy down 1% of the NSR royalty covering 14 claims which are optioned (the “Optioned Claims”) from underlying claim holders by payment of US$4,000,000 to EMX. Except with respect to the Optioned Claims, the EMX royalty is not capped and not subject to buy-down.

Click here to read the Eurasian Minerals (TSXV:EMX) press release