The deal sees Teck subsidiary Teck Chile granted options to earn up to a 75% interest in Loreto by making US$600,000 in staged cash payments to Golden Rim and spending $17 million on exploration, Golden Rim said.

"Golden Rim believes that Loreto could well represent the last unexplored outcropping Oligocene-Eocene porphyry system in northern Chile. Not surprisingly, Loreto is surrounded by BHP and Codelco, two of the largest copper companies in the world," Golden Rim managing director Craig Mackay said.

Golden Rim says that exploration has identified a highly prospective 2.3km by 1km alteration centre at Loreto which has the potential to host a deep porphyry copper deposit.

"The option and joint venture agreement allows Golden Rim to leverage off Teck's significant porphyry copper exploration and development experience," Mackay said.

"Teck has two major copper operations in Chile, including the Quebrada Blanca Mine, located 120km south of Loreto along the West Fissure," he said.

The company noted that mineral concessions at Paguanta are not included in the agreement and Golden Rim is pursuing an alternative transaction.

Golden Rim is focusing on its gold projects in West Africa.

Shares in Golden Rim last traded at A6.9c, giving the company a market capitalisation of $20.9 million.