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Minera sells majority stake in Brazilian subsidiary

11th June 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Minera Gold would receive a A$4.5-million cash injection into its Brazilian subsidiary Mundo Mineracao (Mundo Brazil) after signing a share subscription agreement with a private investor.

Under the agreement, the unnamed investor would subscribe for shares in Mundo Brazil, which would become an incorporated joint venture (JV) vehicle for the Engenho gold project.

The investor would ultimately hold a 60% interest in Mundo Brazil.

“This agreement is a great outcome for our shareholders in the current environment. We are looking forward to working with our new JV partner to prove up and deliver low-cost ounces in the medium term and to extract value from this asset,” said Minera chairperson Chris Chalwell.

The company has already received the first tranche payment of A$920 000 in exchange for a 25% shareholding in Mundo Brazil, with the funds allocated towards paying the first installment of creditor payments.

Mineral Gold would be able to control Mundo Brazil until the investor’s shareholding exceeds 51%.

Mundo Brazil would also demerge the company’s 51% shareholding in the Tocantins JV, with control of the asset reverting to Minera Gold. The Tocantins project covers some 220 000 ha of prospective greenstone belt in northern Brazil, and contains a number of targets for gold, copper, iron-ore and nickel.

Edited by Creamer Media Reporter

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