Rio Tinto, Sipa Resources Enter JV in Uganda

Sipa Resources (ASX: SRI) has announced that it has signed an earn-in and joint venture agreement (JV) with Rio Tinto to acquire an interest in its Kitgum Pader base metals project Northern Uganda.

According to Sipa the JV will allow them to accelerate nickel-copper exploration activities within the broader Kitgum Pader area, while also continuing to evaluate the Akelikongo nickel-copper discovery.

Rio Tinto will contribute expertise and funding while Sipa will continue to manage exploration activities in the initial stages of the joint venture, leveraging off its extensive technical and logistical experience operating in Uganda.

As quoted in the press release, Sipa’s managing director Lynda Burnett said:

“This is a company-defining transaction for Sipa which vindicates our long-term focus on pursuing opportunities to discover new world-class base metal and gold-copper deposits within emerging mineral provinces with Tier-1 potential. Attracting a global major such as Rio Tinto to farm-in to the Kitgum Pader Project reflects both the enormous potential of the ground and the quality of the work which the Sipa exploration team has completed over the past five years.”

Click here to view the full Sipa Resources Ltd. (ASX:SRI) press release.