- Meridian Mining (MNO) has signed a binding purchase agreement to wholly acquire the Cabaçal copper-gold project in Brazil
- The finalised deal follows an option agreement signed on August 26, 2020, and represents a key addition to the company existing portfolio
- Mineral rights will now be transferred to the company, after which Meridian will issue an initial payment of US$275,000 (roughly C$377,809) to the vendors
- In the near-term, the company intends to carry out verification and infill drilling at a Volcanogenic Massive Sulphide (VMS) target identified during a previous drill program
- Meridian Mining (MN) is currently up 22.58 per cent to $0.19 per share
Meridian Mining (MNO) has signed a binding purchase agreement to wholly acquire the Cabaçal copper-gold project in Brazil.
The finalised deal follows an option agreement signed on August 26, 2020, which was followed by an initial payment in accordance with that agreement on September 4.
With all due diligence now completed, the vendors are expected to transfer the mineral rights to Meridian, after which the company will make the next payment of US$275,000 (roughly C$377,809). Meridian is required to pay a total of US$8.75 million (C$12.02 million) all together, US$300,000 (approximately C$412,155) of which has been paid to date.
Located in the state of Matto Grosso, the Cabaçal copper-gold deposit was discovered by BP Minerals in 1983, and was then acquired by Rio Tinto in 1989 as part of their C$5.66 billion buyout of BP Minerals.
The project was acquired in 2005 by two private Brazilian companies which currently hold the property: Prometálica Mineração and IMS Engenharia Mineral.
Adrian McArthur, President and CEO of Meridian Mining, said the Volcanogenic Massive Sulphide (VMS) Cabaçal Project presents an opportunity to continue building a future mid-tier mining house.
“To secure the untapped value potential presented by the Cabaçal district scale VMS project for our investors and bring it onto the TSX Venture Exchange is an event rarely seen.
“Our intention is to develop Cabaçal in an environmentally sustainable manner using best practices and engaging with local stakeholders to build our social license to operate,” he added.
In the near-term, Meridian intends to carry out verification and infill drilling on a VMS envelope that was identified during earlier drilling work.
Meridian Mining (MN) is currently up 22.58 per cent to $0.19 per share at 12:19pm EST.