On January 28, Canada-based BRC DiamondCore Ltd. announced that it has entered into an joint venture (JV) agreement with Australian miner Rio Tinto Minerals Development Limited on iron ore exploration in areas within Province Orientale, Democratic Republic of the Congo.
Under the JV Agreement, which is in the form of a shareholders' agreement, BRC DiamondCore will own 25 percent of the share capital of the joint venture company which will hold the permits, with Rio Tinto owning 75 percent of the share capital. This structure is expected to implemented by the end of February 2010. BRC has retained the diamond rights.
According to the announcement, all iron ore exploration up to and including the completion of any feasibility study will be funded by Rio Tinto. BRC DiamondCore will not suffer any dilution during this period, so that its 25 percent interest in the properties will be maintained during this period. The exploration will be carried out by Rio Tinto as operator. After the completion of any feasibility study, funding for the project is to be provided by Rio Tinto and BRC pro rata based on their respective interests in the joint venture company.