PERTH (miningweekly.com) – ASX-listed Meteoric Resources has struck a A$30-million agreement to divest of its Juruena gold project, in Brazil.

The company has signed a term sheet with Keystone Resources, which is a wholly-owned subsidiary of Alchemist Investments Inc.

Under the terms of the agreement, Meteoric will receive a $2.5-million cash payment on the completion of the transaction, a further $7.5-million within six months of completing the transaction and a further $10-million 12 months after the transaction.

Meteoric would also be entitled to a 2% gross royalty on the project, capped at $2-million.

Juruena is currently estimated to host a Joint Ore Reserves Committee-compliant resource of 1.9-million tonnes, containing 387 000 oz of gold over three deposits, which remain open at depth.

Meteoric is currently working on a scoping study for the development of the Dona Maria, Crentes and Querosene deposits, which is expected to be finalised in the second quarter of this year.

“I am very proud of the work we have completed in firstly identifying then securing Juruena followed by our successful exploration of the project over the past three years. During this time the team has produced some truly amazing drilling results ultimately resulting in a substantial mineral resource of 1.9-million tonnes at 6.3 g/t gold for 387 000 oz,” said Meteoric MD Andrew Tunks.

“We consider this the ideal moment at which to pass Juruena to a group far better placed than ourselves to now develop the project, allowing Meteoric to focus on what it does best, which is the identification, acquisition and advancement of projects through high-quality exploration focusing on results generated at the drill bit.”

The sale price meant that Meteoric was fully funded to accelerate its exploration programmes at the Palm Springs gold project in Western Australia, while having a substantial cash balance to actively seek complementary investments and acquisitions, Tunks said.

The sale of the Juruena asset will not be subject to shareholder approval, and completion of the sale is targeted for before the end of August.