By Adriano Marchese

McEwen Mining Inc. said Tuesday that it has signed an option to become a majority joint-venture partner with mining major Rio Tinto PLC in Nevada.

The Canadian gold and silver producer said that it has entered into a binding term agreement with Rio Tinto's subsidiary, Kennecott Exploration Co., for an option to earn a 60% interest in the Elder Creek property.

To exercise the option, McEwen would have to pay $18 million, after which the two parties would form an unincorporated joint venture where McEwen would be the largest partner, and Kennecott would be the project operator.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 06, 2022 06:36 ET (10:36 GMT)

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