Horizonte Minerals Plc, the exploration and development company focused in Brazil, has announced the signing of Heads of Terms between Magellan Minerals Ltd, a Canadian gold exploration company, and the Company's wholly owned subsidiary HM do Brasil Ltda.
Although they still remain subject to definitive binding documentation, The Heads of Terms will provide Magellan Minerals with an option to earn up to a 70% interest in the Company's 1,553 ha Agua Azul do Norte gold property, located in the Carajas mining region, northern Brazil.
Initially, an option has been put in place for Magellan to earn 51% interest in the Agua Azul project for a total cash consideration of US $320,000 staggered over a 36 month period.
Upon earning a 51% interest, Magellan has the option to increase its ownership in Agua Azul to 70% upon completion of a National Instrument 43-101 compliant PreFeasibility Study together with a further cash payment of US$500,000 to Horizonte.
If Magellan has earned up to 70% of Agua Azul, both companies will contribute to ongoing development costs as per their respective interests. If HM's interest drops below 10% its interest will be converted to a 1% net smelter royalty on any production arising from resources discovered within the Property area.
"This latest JV with Magellan is part of our strategy of monetising our gold assets and maximising additional value uplift from our gold portfolio for shareholders at no cost to Horizonte. We have a strong cash position of £4.8 million and have the continued support of two major mining companies Teck Resources, a major shareholder in the Company, and AngloGold Ashanti as a JV partner on the Falcao gold project," said Horizonte CEO, Jeremy Martin.
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