Oracle Ridge JV Hinges on Nittetsu Board Approval Amid Debt and Option Deals

Strategic Progress at Oracle Ridge

Eagle Mountain Mining Limited (ASX, EM2) has announced a significant advancement in its efforts to develop the Oracle Ridge copper project in Arizona. The company revealed that Nittetsu Mining Co., a well-established Japanese mining and smelting firm, has completed its due diligence process and is now drafting the legal agreements necessary to formalise a joint venture. Subject to Nittetsu’s board approval, binding contracts are expected to be signed by April 2026.

This development marks a critical step in Eagle Mountain’s broader strategy to unlock value from Oracle Ridge, which includes renegotiating existing debt and securing an option to re-acquire the mine infrastructure and mineral rights from Marble Mountain Ventures LLC. The project boasts a substantial mineral resource estimate of 28.2 million tonnes grading 1.35% copper, alongside significant silver and gold credits.

Joint Venture Structure and Funding

Under the proposed joint venture, Nittetsu would earn an 80% interest in the consolidated Oracle Ridge project, which includes both the Oracle Ridge mine and the adjacent Wedgetail Project. Nittetsu’s commitment involves contributing US$20 million over four years towards exploration, development, and related expenditures. This funding package notably covers the repayment of Eagle Mountain’s outstanding US$7.25 million debt to Vincere Resource Holdings LLC, with a discounted early repayment of US$2.5 million, as well as the US$1 million option payment to reacquire the mine from Marble Mountain Ventures.

Eagle Mountain will retain a 20% stake in the joint venture and will be free-carried until Nittetsu’s contributions reach the US$20 million threshold. Beyond this point, Eagle Mountain can choose to maintain its interest by participating in further funding or face dilution according to standard industry terms. Nittetsu will manage the joint venture operations and hold 100% off-take rights on commercial terms.

Market Context and Outlook

Executive Director Fabio Vergara highlighted the favourable market conditions underpinning the transaction, citing strong copper prices and buoyant commodity markets as ideal for advancing Oracle Ridge. The involvement of a financially robust partner like Nittetsu, with established mining operations in Japan and Chile, lends credibility and operational expertise to the project’s future development.

While the offer remains non-binding until formal agreements are signed, the completion of due diligence and commencement of legal documentation signal a high level of commitment from Nittetsu. The transaction could transform Eagle Mountain’s prospects by providing the capital and strategic partnership necessary to progress Oracle Ridge towards commercial production.

Investors will be watching closely for the April 2026 board decision at Nittetsu and the subsequent signing of binding agreements, which will set the stage for the next phase of development in this promising Arizona copper project.