PERTH (miningweekly.com) – Takeover target Avanco is one step closer to the grant of a provisional environmental licence for its Pedra Branca copper project, in Brazil, following a successful public hearing.
The company on Wednesday reported that no objections were recorded at the public hearing, which indicated a strong level of community support.
Avanco noted that further consultation was still required, with environmental authorities expected to review the matters raised during the public forum and where appropriate, integrate them into the provisional environmental licence.
The provisional licence was likely to be granted in the third quarter of this year, with the subsequent installation licence expected before the end of the year.
In the meantime, Avanco is continuing development-related activities at its Pedra Branca East project, with work on a revised mineral resource estimate reaching an advanced stage.
A definitive feasibility study for the project is expected in the fourth quarter of this year, with Avanco expecting to be in a position to make a construction decision in the first quarter of 2019, subject to financing.
Avanco noted that the financing strategy for the Pedra Branca project would be dependent on the outcome of the A$418-million off-market takeover offer from Oz Minerals. Oz was offering Avanco shareholders 8.5c in cash and 0.009 of its own shares for every Avanco share held.
Should the takeover offer not proceed, Avanco would seek to raise finance, including through the issuance of equity or the assumption of debt.