Centaurus Metals Ltd. said Aug. 6 that it secured an option to acquire the Jaguar nickel sulfide project in Brazil from Vale SA.
In exchange, Vale will receive the Salobo West copper project tenements, also in Brazil; an immediate US$250,000 cash payment; two deferred cash payments totaling about US$6.8 million as well as a 0.75% royalty on concentrate production from Jaguar.
Centaurus will settle US$5.0 million of the deferred cash payment upon the first commercial production at Jaguar.
Further, both parties agreed to enter into a future off-take agreement, where Vale can purchase all the production from Jaguar at prevailing market prices, with the miner considering a pre-purchase agreement to support funding for the operation.
Vale and Centaurus also agreed to explore opportunities to optimize costs at the project, as well as generate potential synergies between Jaguar and Vale's nearby projects.
Separately, Terrativa Minerais SA agreed to convert its 2% royalty in Salobo West into a 25% share of project sale proceeds. In exchange, Centaurus will pay up to A$3.5 million over a 2.5-year period, including an initial A$1.0 million in shares upon the completion of the Jaguar project acquisition.