en.Wedoany.com Reported - Tier One Silver has signed a letter of intent to conditionally acquire a 70% controlling stake in Compañía Minera Ruta de Cobre S.A., a private mining company in Ecuador that holds three mining concessions in Azuay Province, involving the RDC project, a significant porphyry copper-molybdenum deposit.

Data supporting the deposit comes from 135,162 meters of diamond drilling completed between 2014 and 2021, with the deepest drill hole reaching 688 meters. Under the terms of the letter of intent, Tier One Silver has the right to acquire 70% of the shares in the project holding company, currently held by two independent shareholders and their spouses. The agreement requires final contract negotiations to be completed within 21 days, but the final execution of the transaction is subject to financial and regulatory approvals, and therefore completion is not guaranteed.

Tier One Silver noted that the RDC project is a key asset in the Andean region with significant copper-molybdenum potential, currently on hold due to regulatory and community issues. Its plans include phased exploration, encompassing technical studies, additional drilling, and potential future economic assessments to determine project feasibility.

Tier One Silver CEO Peter Dembicki stated that the project represents a significant opportunity in the region. "This is one of the most interesting projects in South America, and we are very pleased to have the opportunity to develop it alone or with partners. We believe its scale is attractive to institutional investors and major mining companies. We believe the RDC project has potential for tonnage growth and possibly precious metal content that has not yet been systematically evaluated."

The company believes the project has resource growth potential and may contain precious metals that have not yet been systematically assessed.