The company acquired another 16.9% in Toronto-listed project owner Tintina Resources for C$7.1 million from fellow shareholder Electrum Global Holdings.

It takes Sandfire’s stake in the company and project from 61.2% to 78.1%.

Sandfire’s total investment in Tintina since 2014 has been A$31 million, equating to an acquisition cost of around US3c per pound of contained copper in resource.

“By any measure, this means we have acquired close to 80% of substantial high-grade copper resource comprising almost 600,000 tonnes of copper at a very attractive cost,” Sandfire managing director Karl Simich said.
  
 “Given the positive outlook for copper as the market continues to tighten, we see this as a great opportunity to consolidate our growth pipeline with an asset which has the potential to deliver high grade, low-cost production for many years into the future.”
  
 “At the same time, the development of the Black Butte Project represents an opportunity to bring significant jobs and economic opportunities to the State of Montana and to showcase a world-class development plan which is consistent with our own environmental credentials.
  
 “We look forward to working closely with CEO John Shanahan and his team at Tintina as the project continues to move forward towards development, coming on stream during what is shaping up as a very exciting time in the global copper market,” he said.

While Sandfire has been involved with Tintina and the project for the past three years, it has recently increased its focus on the potential development.

But permitting is the sticking point in Montana, with Tintina recently responding to a third round of comments from the Montana Department of Environmental Quality.

Tintina is closer to receiving a draft mine operating permit – expected by the end of the year – after which an environmental impact study can be lodged.

Deutsche Bank analyst Matt Hocking said on Friday that a final investment decision could come in the 2020 financial year if there were no permitting delays.

The underground project would require a two-year construction period with capital costs estimated at US$220-230 million for a 15-year operation.

On Friday, Simich said the company was “moving forward and edging ahead” at Black Butte and would continue to “push along with great intensity”.

While most analysts ascribe little value to Black Butte, Deutsche said Sandfire remained the cheapest global copper play under its coverage.

Deutsche has an A$8.20 price target (down from $8.30) and a buy rating.

Shares in Sandfire dropped by 3.5% this morning to $5.74.