- Altamira Gold (TSXV:ALTA) has sold its Crepori gold project in Brazil’s Para state to privately-held Mineracao do Para
- The project covers 6,789 hectares and hosts two claims, each of which will net the company a C$250,000 payment
- In addition, the company will retain a four per cent net smelter return royalty on the project once it begins gold production
- The deal represents a key step in Altamira’s transition from an exploration company to a junior gold producer
- Altamira Gold (ALTA) is currently steady and is trading at 10 cents per share
Altamira Gold (TSXV:ALTA) has sold its Crepori gold project in Brazil’s Para state to privately-held Mineracao do Para.
The project is the company’s only asset located in the country’s Tapajos Belt, covering a total of 6,789 hectares with two established exploration claims.
In late 2017, Altamira drilled seven holes totalling 876 metres, but found “generally disappointing” results. The best of these were one metre at 4.55 grams per tonne of gold and four metres at 3.23 grams per tonne of gold. Since then, no further exploration work has been conducted.
Under the terms of the agreement with Mineracao do Para, Altamira will receive a C$250,000 cash payment for each of the two claims. The $500,000 sum will be paid within 30 days of the transfer of ownership being publicised by the Agencia Nacional de Mineracao.
While the process has been delayed by the impact of the COVID-19 pandemic, the transaction is expected to be completed within the next 90 days.
In addition, Altamira has been granted a four per cent net smelter return royalty on the project, which will be paid monthly upon the commencement of gold production.
Mike Bennett, President and CEO of Altamira Gold, said the deal is a key step in the company’s transition from an explorer to a junior gold producer.
“The proximity of MAP’s existing mining operation to the Crepori project will enable ore from the project area to be processed in the same plant.
“This deal is part of a recent strategic review of Altamira’s assets, where we have decided to focus all of the company’s exploration and mining efforts on the projects within the Alta Floresta Belt in northern Mato Grosso particularly the advancement of our Cajueiro project to production in late 2021,” he said.
Altamira Gold (ALTA) is steady and is trading at 10 cents per share at 12:57pm EDT.