McEwen Copper options Elder Creek Project to Rio Tinto

The binding term sheet is for an option to earn a 60% interest in and joint venture the Elder Creek property in Nevada by spending US$18 million.

The principal terms of the agreement are:

• KEX will have the right to earn a 60% interest in Elder Creek by investing US$18 million over a maximum of seven years.
• KEX will be the operator of the Elder Creek project during the term of the agreement.
• Following completion of the expenditure commitment, KEX and McEwen Copper will form an unincorporated 60:40 joint venture.
• Other customary representations, warranties, and conditions.