Eagle Mountain Mining has taken significant steps to re-enter its Oracle Ridge copper project in Arizona through a strategic option agreement and a potential joint venture with Japan’s Nittetsu Mining. The deal promises to clear debt and fund early development, setting the stage for a medium-term production restart.
- Option agreement signed to re-acquire Oracle Ridge mine
- Loan amendment extends repayment and offers debt extinguishment
- Non-binding offer from Nittetsu Mining for 80% JV stake
- Nittetsu to fund first US$20 million of project expenditure
- Potential to restart copper production in the medium term
Strategic Re-Entry into Oracle Ridge
Eagle Mountain Mining Limited has announced a pivotal development in its Arizona operations, marking a renewed commitment to the Oracle Ridge Project. The company has secured an option agreement to re-acquire the Oracle Ridge mine from Marble Mountain Ventures LLC, positioning itself to regain control over a historically productive copper asset.
This move is complemented by an amendment to the existing loan agreement with Vincere Resource Holdings LLC, which not only extends the repayment timeline to November 2025 but also opens the door to extinguishing the current debt under favourable terms. This financial restructuring alleviates immediate balance sheet pressures and enhances Eagle Mountain’s flexibility.
A Potential Partnership with Nittetsu Mining
Under the terms outlined, Nittetsu would fund the first US$20 million of project expenditure, including a US$2.5 million payment to clear the Vincere loan and a US$1 million payment to exercise the option to re-acquire the mine. This arrangement would free Eagle Mountain from immediate capital demands while retaining exposure to future upside.
Outlook and Next Steps
The partnership is subject to due diligence and board approval, with a binding agreement expected by early 2026. Should Nittetsu decide not to proceed, Eagle Mountain has until October 2026 to secure an alternative partner. Meanwhile, the company plans to assist Nittetsu’s due diligence, explore new project acquisitions, and reassess its Silver Mountain copper-silver-gold project to maximise shareholder value.
Executive Director Fabio Vergara highlighted the strategic balance achieved in the deal, noting the reduction in shareholder dilution and debt burden while maintaining exposure to the project’s potential. The collaboration with a financially robust and technically capable partner like Nittetsu could accelerate the path to copper production, a critical commodity amid global supply concerns.
Contextualising Oracle Ridge
Located near Tucson in a Tier 1 mining jurisdiction, the Oracle Ridge Project benefits from existing underground infrastructure and a substantial mineral resource estimate. The project’s copper-dominant skarn deposit also contains valuable silver and gold credits, enhancing its economic appeal. Eagle Mountain’s stewardship since 2019 has expanded the resource base, setting a solid foundation for redevelopment.
With major mining players active in Arizona, Eagle Mountain’s renewed focus on Oracle Ridge, supported by Nittetsu’s involvement, could position the company favourably within a competitive landscape. The coming months will be critical in translating these agreements into tangible progress on the ground.
Bottom Line?
Eagle Mountain’s Oracle Ridge revival hinges on Nittetsu’s commitment, promising a fresh chapter for the copper project and the company’s growth trajectory.
Questions in the middle?
- Will Nittetsu convert its non-binding offer into a binding joint venture agreement?
- How will the partnership impact Eagle Mountain’s share structure and future capital needs?
- What timeline and milestones will define the restart of copper production at Oracle Ridge?