Meteoric Resources (ASX:MEI) reports that it has completed the sale of its Juruena Gold Project in Brazil.
The first tranche payment of USD$2.5m (AUD$3.78m) cash has been received from Alchemist Investments, which is the parent company of Keystone Resources.
Meteoric reports that there were delays to completing the sale, which was related solely to satisfying the restructuring pre-condition on the terms for the second and final tranche payment of USD$17.5m (AUD$26.5m) cash, which will now be received on or before 31 March 2023.
The full price of the Juruena Gold Project was agreed upon by both companies and was executed at just under $30 million.
The full price of the Juruena Gold Project was agreed upon by both companies and was executed at just under $30 million
However, the restructuring process has also resulted in Meteoric no longer being entitled to the royalty, which is currently capped at US$2 million, from production at the project as reported by the company in September.
The company also notes that the cash received to date, along with the near-term second tranche payment, will allow Meteoric to increase exploration activities at its Palm Springs project in Western Australia, as well as greatly expand the scope of potential acquisitions.
The Juruena Gold Project is located in Brazil’s Mato Grosso region and currently boasts a JORC 2012 compliant global Mineral Resource Estimate (MRE) of 1.9Mt @ 387koz Au at 6.3g/t comprising three separate by adjacent gold deposits. The three deposits are reported to remain open at depth and are prospective for gold and copper-gold mineralisation, with potential to further increase the project MRE.
It is also noted that 40% of the known MRE is classified into the indicated category and represents about 100,000 ounce gold increase from the previous MRE. The project is also host to a ‘significant’ porphyry system, which is exemplified by a 640m thick zone of copper mineralisation enriched 100 times above local background copper levels intercepted by diamond drilling (DD) activities.
With the sale of the Juruena Gold Project now complete, Meteoric announces that it is moving ahead immediately on both exploration activities at its Palm Springs Project in Western Australia and expanding the scope for potential acquisitions.