PERTH (miningweekly.com) - ASX-listed Mundo Minerals has terminated the proposed sale of its Brazilian subsidiary after it failed to complete the transaction within the designated timeframe.
In April this year, Mundo announced that it would dispose of Mundo Mineracao to a group of Brazilian individuals. The subsidiary’s net asset deficiency was around A$8.4-million, and as a result, the gross consideration for the subsidiary was $1.
However, Mundo said on Wednesday that the purchasers had been unable to secure the financial backing to settle the debts owing in Brazil, and to provide working capital for the subsidiary.
Mundo has now started negotiations with another potential purchaser, which had previously expressed interest in the company’s Brazilian assets.
“While the delay in completing the sale of Mundo Brazil is frustrating, we remain extremely positive that a clean exit from Brazil will be negotiated over the coming weeks,” said MD Ashley Pattison.
“The past few months have also seen positive developments with the permitting process for the Christa deposit,” he added.
These included government approval for the archaeological work programme and formal publication of the boundaries of the Ganderala National Park, which excluded Mundo’s concessions.
“These developments are viewed as positive for the ongoing sales process,” said Pattison.