Rio Tinto to acquire 57.74% operating stake in Agua de la Falda for $45M

Rio Tinto (RIO) has agreed to purchase PanAmerican Silver’s (PAAS) stake in Agua de la Falda, a company with exploration tenements in Chile’s prospective Atacama region, and to enter a joint venture with Corporacion Nacional del Cobre de Chile, or Codelco, to explore and potentially develop Agua de la Falda’s assets. Under the agreement, Rio Tinto will acquire PanAmerican Silver’s 57.74% operating stake in Agua de la Falda for $45M and the grant of new smelter returns royalties. Rio Tinto will also acquire 100% of nearby concessions known as the Meridian Property for $550,000 and the grant of new smelter returns royalties. Codelco, which is the world’s largest copper producer and is owned by the Chilean State, holds the remaining 42.26% of Agua de la Falda. The joint venture builds on an underground mining collaboration agreement between Rio Tinto and Codelco signed on October 12 2022. Agua de la Falda has previously been explored for precious metals with minimal modern exploration for copper. Analysis by Rio Tinto Exploration indicates it is prospective for new copper discoveries, which will now be the focus of the joint venture.