News: Sandfire Resources acquires stake in U.S. copper developer

Sandire Resources (ASX:SFR) is to acquire a 36% stake in copper developer Tintina Resources (TSX-V:TAU) through a C$16 million private share placement at $C0.20 per share.

Sandfire will also be issued warrants exercisable at C$0.28, C$0.32 and C$0.40 respectively which, if exercised, would increase its stake to 53% on an undiluted basis, giving it a clear path to control.
  
Tintina’s key asset is the Black Butte Copper Project in central Montana, U.S.

It is an advanced project in a stable jurisdiction which represents a strategic fit with Sandfire’s DeGrussa Project and a high quality growth opportunity.

Black Butte contains Measured and Indicated Resources of 15.7Mt at 3.4% copper for 533,600 tonnes of contained copper, and Inferred Resources of 2.3Mt at 2.8% copper for 63,500 tonnes of contained copper.
 
Tintina has completed a Preliminary Economic Assessment demonstrating the potential to develop a robust underground mine capable of producing 30,000tpa of copper at an average cash cost of US$1.80/lb over an 11-year mine life, with indicative CAPEX of US$218 million.

Funds contributed by Sandfire will be used to complete a Feasibility Study and to pursue project permitting, as well as to fund further exploration in the district.