LCL Signs Second PNG Farm-In With Rio Tinto at Liamu

LCL Resources (ASX:LCL) has signed a second Papua New Guinea farm-in with Rio Tinto, bringing outside funding to its undrilled Liamu copper-gold project.

Under a binding farm-in and joint venture term sheet, Rio Tinto Exploration (PNG) Limited may earn an initial 51% of the Liamu Project by sole funding at least A$6 million of exploration, including at least 3,000m of drilling, within five years. It may move to 80% by sole funding a further A$40 million, or by defining a JORC-compliant Mineral Resource of at least 1Mt copper (or copper equivalent) and completing a Scoping Study. Rio Tinto must sole fund a minimum of A$200,000 within 12 months of obtaining land access before it may withdraw. LCL will be Operator and receive a management fee of up to 10% of exploration expenditure, although Rio Tinto may elect to become Operator. Initial work will target undrilled catchments around the Dada porphyry discovery, where trenching returned 96m @ 0.41g/t Au, and Rio Tinto will review further work at the Ubei prospect within 12 months. The project is Exploration Licence EL2432, about 120km to 150km east-southeast of Port Moresby.

The farm-in provisions are subject to PNG ministerial approval, registration of the term sheet and the licence extension applications not being rejected. If these are not satisfied or waived by 30 September 2027, either party may terminate. Neither prospect has been drill tested.