Own Rio Tinto shares? The iron ore giant just sank $21m into this copper stock

The Rio Tinto Ltd (ASX: RIO) share price is outperforming on Tuesday. It follows recent news of its latest multi-million-dollar investment.

The S&P/ASX 200 Index (ASX: XJO) iron ore giant’s copper technology venture Nuton has sunk US$15 million (around $21 million) into Canadian-listed explorer Regulus Resources.

The Rio Tinto share price is $127.74 at the time of writing. That’s 1.77% higher than it was at yesterday’s close.

For comparison, the ASX 200 is up 0.07% right now while the S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 0.04%.

Let’s take a closer look at the latest from Rio Tinto.

ASX 200 iron ore giant’s latest copper investment

If you own Rio Tinto shares, congratulations! You now also hold a 16.1% stake in copper explorer Regulus.

The Aussie iron ore giant participated in an arm’s length non-brokered private placement financing that saw it walk away with a $21 million stake in the international materials stock. Nuton was issued around 20 million Regulus shares for approximately $1.08 apiece.

According to Rio Tinto, Nuton is essentially a portfolio of proprietary copper leach-related technologies and capabilities.

Meanwhile, Regulus’ principal project is the AntaKori copper-gold-silver project, located in Peru. A chunk of the funds raised through the company’s private placement will be used to advance the project.

However, its new share in the Canadian copper stock isn’t the only reason Rio Tinto is in headlines this week.

The company has reportedly been involved with the loosing of a radioactive capsule in Western Australia.

The capsule went missing while being transported by a third-party contractor engaged by the company to move it from the Gudai-Darri mine to Perth, Al Jazeera reports.  

Western Australia’s Department of Fire and Emergency Services has issued an alert for a radioactive substance risk for parts of the state.

Rio Tinto share price snapshot

The Rio Tinto share price has outperformed so far this year, gaining around 11% year to date.

Meanwhile, the ASX 200 has risen nearly 8%.

Looking further back, the stock is up 14.5% over the last 12 months while the index has gained 7.5%.

The post Own Rio Tinto shares? The iron ore giant just sank $21m into this copper stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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