PERTH (miningweekly.com) – ASX-listed Crusader Resources has signed a binding term sheet with fellow-listed Meteoric Resources to divest of its Juruena and Novo Astro gold projects, in Brazil.

Under the terms of the agreement, Meteoric would pay A$3-million in cash and milestone share payments.

The fist A$1-million cash payment will be due on the completion of the acquisition, with some 50-million Meteoric shares also to be issued, with a 12-month escrow period.

Subject to shareholder approval, Meteoric will issue a further A$750 000 worth of shares on the delineation of a Joint Ore Reserves Committee (Jorc) resource of no less that 400 000 oz of gold at the Juruena or Novo Astro projects, with the number of shares to be calculated on a five-day volume weighted average price on the date of the delineation.

Subject to shareholder approval, Meteoric will issue a further A$750 000 worth of shares on the decision to start mining at either project, pursuant to a full mining licence.

The two projects cover some 770 km² and comprise 24 contiguous tenements in the Alta Floresta Belt. Juruena hosts a Jorc resource estimate of 1.3-million tonnes, for 261 000 oz of gold.

Meteoric MD Andrew Tunks said on Thursday that the acquisition of Juruena and Novo Astro was a pivotal point in transitioning the company from explorer to miner.

“Across Juruena and Novo Astro we are presented with a fascinating array of first-class targets which have been pinpointed by an excess of $25-million in exploration expenditure to date, including over 50 000 m of drilling. As part of the acquisition process, we are committed to retaining the existing technical staff working on the project in order to hit the ground running,” Tunks said.

Crusader told shareholders that while the projects were considered to be prospective, the sale provided the company with a cash injection while reducing its expenditure commitments, and allowing the company to retain an interest in the upside potential through a significant shareholding in Meteoric.