Beadell Resources Ltd. said April 6 that it entered into a binding agreement with Brazilian firm Mineracao Vale dos Reis Ltda. to consolidate the Tucano land package in Brazil.

Under the terms, Beadell will acquire Mineracao, which holds 30% of the joint venture, for a total of US$1.8 million in cash. The company owns the remaining 70% stake in the JV.

A 0.75% net smelter royalty will also be payable on any gold or other precious metals produced from the former JV ground.

The joint venture tenements comprise 576 square kilometers of highly prospective land surrounding the Tucano gold mine, including direct strike extensions of the Tucano corridor gold mineralization at Urucum East.

The transaction, which is expected to close June 30, is subject to due diligence and regulatory approval.