JOHANNESBURG (miningweekly.com) – ASX-listed Centaurus Metals has exercised its right to acquire a 100% interest in the tenements that make up the 750 km² Pará exploration package, in Brazil.

Centaurus in October 2016 entered into an earn-in agreement with Terrativa Minerais. Under the terms of the agreement, Centaurus was required to invest about A$1-million in the Pará project within a two-year period.

The investment was, however, completed within six months of the completion of the deal with Terrativa.

As stipulated in the 2016 agreement, Centaurus will issue 30-million ordinary shares to Terrativa, while also granting it a 2% production royalty over future production from the tenements.

In addition, Centaurus will also issue Terrativa 90-million performance rights in three tranches of 30-million performance rights each. These will be converted into ordinary shares on the achievement of certain milestones.

The first tranche of performance rights will be converted into ordinary shares if a Joint Ore Reserves Committee- (Jorc-) compliant inferred resource of 500 000 oz of gold or gold-equivalent is defined on the project tenements with five years.

A further 30-million performance rights will be converted into ordinary shares if a Jorc-compliant inferred resource of one-million ounces of gold or gold-equivalent is defined within five years.

The third tranche will be converted into ordinary shares if a Jorc-compliant inferred resource of 1.5-million ounces of gold or gold-equivalent is defined within five years.

“This package of ground has every opportunity to provide the company with a major discovery and to have secured such strategically located tenure in the heart of the world-class Carajás mineral province is an extremely pleasing outcome for the company.

“It’s quite rare for junior companies to have the opportunity to gain access to ground in this province, and we will now look to build on this opportunity by soon commencing an active exploration programme at the Salobo West copper/gold project,” Centaurus MD Darren Gordon commented in a statement issued on Wednesday.

He added that the Serra Misteriosa gold project also remains a key target for the company and that Centaurus was undertaking a review of all information collected to date from the first round of diamond drilling to assess where to best locate future drill holes.

Terrativa president Ingo Wender said Terrativa was pleased to increase its shareholding in Centaurus. 

“We have seen many world-class discoveries made in the Carajás and to be actively exploring in such a prospective location is very exciting. The whole Centaurus team has shown that it is dedicated to making a major discovery in Brazil and this is something that we look forward to being part of as a major shareholder of the company,” he added.