PERTH (miningweekly.com) – ASX-listed junior Avanco Copper has revised its agreement with TSX-listed Jaguar Mining over the CentroGold project, in Brazil.
The two companies in 2016 entered into an A$8.45-million earn-in agreement under which Avanco could take full ownership of the project through various instalments.
However, Avanco has now revised the terms of the agreement to accelerate the full acquisition of the CentroGold project for conditional instalment payments of A$2-million on signing and a further A$2-million within 60 days. A further A$5-million was payable in ten instalments of A$500 000 each, following the completion of permitting.
A net smelter return royalty would also be payable to Jaguar, based on production targets.
“We are very excited about acquiring 100% of CentroGold, which we believe is one of the best undeveloped gold projects in Brazil,” said Avanco MD Tony Polgase.
“The project fits well into our business model of developing low-risk, low-capex mines that capitalise on our Brazilian and Aussie know-how.”
Polgase noted that the opportunity to develop CentroGold sooner complemented the company’s wider copper/gold portfolio.
“Antas is now in its second year of commercial production and is generating healthy margins. The larger Pedra Branca project is advancing well and, pending reviews to project capital and permitting, construction is scheduled for the second half of 2019.
“Therefore, it is apparent that CentroGold sits well between the two, providing an opportunity to add significant shareholder value in the near term.”
Avanco was targeting an upgrade of the Joint Ore Reserves Committee-compliant resource immediately, with a scoping study of CentroGold planned to be finalised by the end of the year. A definitive feasibility study has been targeted for completion by the first half of 2018, with permitting targeted for completion by the second half of 2018.
Avanco was of the opinion that the CentroGold project could be developed into a 100 000 oz/y operation, starting in the second half of 2019.