Rio Tinto takes option on ALX nickel project

TSX-V-listed ALX Resources on Monday announced that it had entered into an option agreement with global mining major Rio Tinto over a nickel project in northern Saskatchewan, sending its shares up nearly 17% in early morning trade.

The Falcon project, near the town of Stony Rapids, will be known as the Firebird nickel project, owing to a naming conflict with another Rio Tinto exploration project in Saskatchewan.

Rio Tinto may acquire up to an 80% interest in Firebird by incurring a total of $12-million in exploration expenditures over six years and by making cash payments to ALX totalling $125 000.