Royalty and prospect generator Eurasian Minerals (TSXV:EMX) kicked off the week by announcing it has optioned it's Superior West copper project in Arizona to Kennecott Exploration. Kennecott is owned by Rio Tinto (NYSE: RIO,ASX:RIO,LSE:RIO), which also owns the massive Resolution copper project in Arizona in partnership with BHP Billiton (NYSE:BHP,ASX:BHP,LSE:BLT). That project is located less than 2 kilometers away from Superior West. Under the terms of the agreement between Kennecott and Eurasian's subsidiary, Bronco Creek Exploration, Kennecott may earn a 100-percent interest in Superior West for a cash payment of US$149,187 and exploration expenditures of US$5.5 million. Kennecott must also make annual option payments amounting to US$1 million before the fifth anniversary of the agreement, plus milestone payments when a preliminary economic assessment (US$500,000), prefeasibility study (US$1 million) and feasibility study (US$2.5 million) are completed and annual advanced minimum royalty (AMR) payments beginning on the first anniversary of the exercise of the option. Eurasian Minerals will keep a 2-percent net smelter royalty on Superior West once Kennecott exercises its option, although Kennecott can buy down 1 percent of the royalty on 14 of the project's 680 claims, or may extinguish the need for AMR payments for a one-time payment of US$4 million. Overall, the news doesn't appear to have garnered much of a reaction from the market. Eurasian's stock was down about 5 percent on Monday to close at $0.74, with just 500 shares trading hands. Still, the interest in Superior West from Rio is an interesting development. As mentioned above, the project is less than 2 kilometers away from Rio and BHP's Resolution copper project, which is set to produce as much as 1 billion pounds of copper per year.