26th Oct 2026 02:14
(Alliance News) - Rio Tinto PLC and Ltd on Monday agreed a farm-in deal with a subsidiary of LCL Resources Ltd to earn up to an 80% interest in the Liamu project in Papua New Guinea.
The London and Melbourne, Victoria-based diversified miner may earn an initial 51% stake, LCL said, by funding at least AUD6 million, or USD4.2 million, of exploration, including 3,000 metres of drilling, within five years.
LCL is a Perth, Western Australia-based exploration company.
Rio's stake can be increased to up to 80% if it funds a further AUD40 million, or by defining a mineral resource of at least 1 million tonnes of copper or copper equivalent and completing a scoping study.
LCL said initial exploration will target its Dada porphyry discovery. Within 12 months Rio will review further work at the Ubei prospect.
LCL will remain the operator of the project and will receive a management fee from Rio Tinto.
Chris Van Wijk, chair of LCL, said: "Both prospects have been held back by the high cost of drilling in remote PNG...This agreement provides the opportunity for both prospects to be tested by one of the world’s leading copper explorers."
Shares in Rio Tinto fell 0.2% to AUD145.98 each on Monday afternoon in Sydney. In London, shares closed down 0.4% at 6,234.41 pence per share on Friday.
By Harvey Dorset, Alliance News reporter
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