MELBOURNE (Reuters) - Rio Tinto has signed a preliminary agreement with Australia’s Sipa Resources to jointly develop a base metals project in northern Uganda, Sipa Resources said on Tuesday.
Rio has the option to take up to 75 percent of the Kitgum-Pader base metals project by spending $59 million, including $2 million in cash payments, and $57 million on exploration in set stages across the next 11 years, Sipa said in a statement. Shares in the ASX-listed miner surged by 9 percent to $A0.12
The agreement remains conditional on due diligence being completed and satisfactory to Rio by mid-August 2018, Sipa Resources said.
Reporting by Melanie Burton; Editing by Sunil Nair