[miningmx.com] – RIO Tinto will combine its heavy mineral sands project in Mozambique with those of Savannah Resources, said Reuters citing an announcement by the junior miner.
The two companies are to set up a joint venture including Rio Tinto’s Mutamba, Dongane and Chilubane assets and Savannah’s Jangamo prospects. Savannah will operate the joint venture and can earn up to 51% of the combined project by carrying out scoping and feasibility studies, said Reuters.
“Savannah gets greater scale (and assumedly some financial backing) and Rio gets Savannah to advance a project that will be way off its list of priorities,” said Investec Securities in a report.
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