Renascor Resources enters earn-in deal with Rio Tinto subsidiary

Renascor Resources (RNU), Adelaide, South Australia, has entered a binding agreement with Rio Tinto‘s (RIO) subsidiary, Rio Tinto Exploration Pty Ltd. regarding an exploration licence, reports.

Exploration licence, EL 5586, is one of three that form Renascor’s Marree Project in the Adelaide Fold Belt of South Australia.

Under the agreement, Rio Tinto Exploration may earn an 80 per cent interest in EL 5586 by making staged payments of $200,000 over two years and spending $3 million on exploration within five years of signing a farm-in agreement.

If Rio Tinto Exploration meets the earn-in requirements, the companies will form a joint venture in which both parties will contribute on a pro rata basis.

If Rio satisfies the earn-in conditions and gains an 80 per cent interest, Renascor’s interest in EL 5586 will reduce to 20 per cent. However, it will maintain complete ownership of the two other tenements within the Marree Project.

“This agreement is consistent with Renascor’s strategy of maximising the value of our significant pipeline of exploration projects in South Australia, while dedicating our resources towards advancing core projects with near-term potential to offer significant value uplift,” Renascor Managing Director David Christensen said.

Additionally, Renascor is focused on its Siviour Graphite Project and the Carnding Gold Project. Both projects are located in South Australia and are wholly-owned by Renascor.

Currently, the company is conducting offtake marketing, preparing samples and advanced battery and metallurgical testing. Offtake discussions are ongoing with anode and battery companies in northeast Asia and Europe following a recently signed MOU with Shanxi Minguang New Material Technology Co.

Significantly, Renascor upgraded the Siviour Project’s JORC ore reserve estimate in July. It now sits at 51.5 million tonnes at 7.4 per cent total graphitic carbon (TGC) for 3.8 million tonnes of contained graphite. This includes a proven reserve of 15.8 million tonnes at 8.4 per cent TGC for 1.3 million tonnes of contained graphite

The upgrade confirmed Siviour is the largest known total ore reserve of graphite outside of Africa and positions the project as the second-largest proven reserve of graphite in the world.

At Carnding, the company is preparing to drill the shallow, high-grade Soyuz gold prospect.

Renascor recently conducted ground clearance surveys and geological mapping. Coming up, it will conduct geochemical sampling and induced polarisation surveys.

Once it gains regulatory approval and a drill rig becomes available, Renascor will drill test the prospect.

Following a $3.6 million capital raise in September, Renascor ended the quarter with a healthy cash balance of around $5.2 million – positioning it well to conduct exploration.

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