Horizonte Minerals (LON:HZM) has signed a US$4.5 million earn in agreement with AngloGold Ashanti (JNB:ANG) to develop its Falcao gold project, located in the Carajas mineral province of northern Brazil.
Under the terms of the deal Horizonte will receive US$900,000 exploration funding in the first year, followed by US$1.6 million in the second year and U$2 million in the third.
Drilling will also be fast-tracked to test the potential of the resource. If all the milestones are hit, then Anglo will end up owning 51 per cent of the project.
"This is yet another exciting transaction for Horizonte,” said chief executive Jeremy Martin.
“The Falcao project is a significant gold anomaly in the southern part of the Carajas Province defined by previous exploration work carried out on the property.
“There are multiple gold intersections from wide spaced historic drilling undertaken by the previous operator and this data supports the model that Falcao has the potential to host a major gold deposit.
“The earn-in agreement with AngloGold will allow a fast track drill programme to test the resource potential of the project.”
Falcao was a originally a BHP Billiton grassroots discovery that was identified by regional stream sediment sampling.
The AngloGold tie-up is the second significant transaction in the space of a month. On July 27 Horizonte took full control of the Araguaia nickel project in the Carajas region of Brazil currently owned by Teck Resources (TSX:TCK) and merged it with its neighbouring Lontra development.
It created at a stroke a 100 million tonne high grade resource which could, over time, creep up to 150 million tonnes and even 200 million tonnes, according to Horizonte boss Martin.
In return the Canadian giant got a 50 per cent stake in an enlarged Horizonte, worth around £7.5 million.
Horizonte also raised £5.1 million by issuing shares at 10p each.
http://www.proactiveinvestors.co.uk/companies/news/20316/hortizontes-us45-million-tie-up-with-anglogold-ashanti-20316.html
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