Centaurus Metals Ltd. is expanding its gold portfolio with the acquisition of a gold-copper exploration project in northern Brazil through an existing strategic alliance with Terrativa Minerais SA.
The land package includes more than 750 square kilometers of exploration licenses and applications in the state of Pará, including the highly prospective Serra Misteriosa gold project, the company said Oct. 5.
Under the binding letter agreement, Centaurus can earn the right to acquire 100% of the property by spending 2.5 million Brazilian reais on the project within two years.
The company can exercise the option by issuing 30 million shares and a 2% production royalty over future gold production from any of the tenements.
Centaurus will also issue three tranches of 30 million shares each to Terrativa, subject to inferred resources containing 500,000 ounces, 1 million ounces or 1.5 million ounces of gold or gold equivalent being defined on the property within six years.
Terrativa will receive 25% of proceeds if Centaurus disposes of any of the properties in the land package.
Centaurus plans to start exploration shortly, including geochemical sampling and geophysical surveys, ahead of drilling within three to six months.
As of Oct. 4, US$1 was equivalent to 3.22 Brazilian reais.