- Meridian Mining (MNO) is progressing its acquisition of the Cabaçal copper-gold project in Brazil with its first option payment
- The deal was signed with Prometálica Mineração and IMS Engenharia Mineral on August 26, two privately-held companies which acquired the project in 2005
- Meridian will pay a total of C$11.51 million in cash and 4.5 million shares upon the satisfaction of certain milestone over a 39-month period
- The company is currently reviewing the projects previous drilling records to determine its prospectivity
- Meridian Mining (MNO) is currently down 10.71 per cent and is trading at 25 cents per share at 2:13pm EDT
Meridian Mining (MNO) is progressing its acquisition of the Cabaçal copper-gold project in Brazil with its first option payment.
Under the terms of the deal, which was signed on August 26 with two privately-held Brazil-based companies, Prometálica Mineração and IMS Engenharia Mineral, Meridian will pay a total of C$11.51 million in cash and 4.5 million shares for the acquisition.
The cash payments and share issuances will be made upon the satisfaction of certain milestones over a period of roughly 39 months.
Pursuant to the terms of the initial payment, Meridian issued to the vendors a cash payment of approximately $32,704 and secured its right to a 90-day due diligence period.
Adrian McArthur, President and CEO of Meridian Mining, said he has been encouraged by what has been seen during the first few days of the technical review.
“Understanding the broader distribution of base and precious metal credits through compilation of the historical data and check drilling will be key to optimising this opportunity, in a climate which is seeing a resurgence in base and precious metal values,” he added.
Adrian also noted that the results of the previously drilled holes “indicate that Cabaçal presents a strong copper gold project opportunity, with additional potential for zinc, lead and silver credits”.
Located in the Alto Jauru Belt, approximately 330 kilometres west of Cuiabá, the Cabaçal deposit was previously mined by BP Minerals and Rio Tinto as a shallow, high-grade underground operation from the late 1980s to the early 1990s. However, this excluded the main zone of of sulphide mineralisation.
During this time, the underground mine produced 869,279 tonnes at 0.82 per cent copper and five grams per tonne of gold. Most recently, an inferred resource estimate completed by Falcon Metals in 2009 outlined a 21.7-million-tonne resource at 0.6 per cent copper and 0.6 grams per tonne of gold.
Meridian Mining (MNO) is currently down 10.71 per cent to $0.25 per share at 2:13pm EDT.