Rio Tinto (RIO) said Monday it has signed final joint venture agreements with Sumitomo Metal Mining for the Winu copper-gold project.

The project is in the Great Sandy Desert region of Western Australia, Rio said, adding the two companies had signed a term sheet in December 2024 to form the joint venture.

Under the deal, Rio will keep developing and operating the Winu project and Sumitomo Metal Mining will pay Rio up to $430.4 million for a 30% stake of the project, Rio said, adding the amount includes $195 million up front and up to $235.4 million linked to milestones.

The deal is expected to close in 2025, Rio said.

Shares of Rio Tinto were up 3.3% in early trading.

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