PERTH (miningweekly.com) – Junior Centaurus Metals has entered into an agreement to secure the Pará exploration package, in northern Brazil, through an existing alliance with Terrativa Minerais SA.

The exploration package includes the Serra Misteriosa gold project, and covers some 750 km² of tenements in the mineral rich state of Pará.

Under the terms of the agreement, Centaurus would earn the right to acquire 100% of the project by spending A$1-million in the project area within a two-year period.

Once Centaurus has met the minimum expenditure commitment, the company would have the right to acquire 100% of the project tenements through the issue of 30-million shares, and a 2% production royalty over future gold production from any of the project tenements.

Concurrently with the issue of the ordinary shares, Centaurus would also issue Terrativa three tranches of performance shares, with the first 30-million to be issued on the establishment of a Joint Ore Reserves Committee-compliant inferred mineral resource of 500 000 oz of gold or gold equivalent, within a six-year period.

The second tranche of 30-million shares would be issued on the establishment of an inferred mineral resource of one-million ounces, within six years of executing the agreement, while a further 30-million shares would be issued once an inferred mineral resource of 1.5-million ounces of gold or gold equivalent had been defined, also within six years of the agreement.

The future issue of both ordinary and performance shares would be subject to shareholder approval.

Centaurus MD Darren Gordon said on Wednesday that the company was pleased to have secured the exploration opportunity, leveraging off its long-standing relationship with Terrativa.

“The Serra Misteriosa gold project and the additional tenements in the Pará package are well and truly in elephant country and will provide us with a pipeline of exploration opportunities that would normally be well beyond the reach of a junior like Centaurus.”

Gordon said that Serra Misteriosa itself was located near the heart of a world-class mineral province, and just 100 km from the Carajas region of Brazil, and 200 km from the multimillion-ounce gold deposit at Volta Grande.

“The Serra Misteriosa geology and geochemistry is strongly analogous to Volta Grande and represents a compelling exploration opportunity.”

Gordon noted that the opportunity to secure such a large package of high-quality ground, for no up-front costs, was a great outcome for shareholders and opened an exciting new gold exploration front for Centaurus in Brazil.