Avanco has agreed to a deal with Brazilian major Vale to purchase 100 per cent of its Pantera copper project in Brazil, in an acquisition expected to cost anywhere between $25 to $44 million. Vale’s most prominent operation is the Carajás mine, which is the largest iron ore mine in the world.
The Pantera project, located near Avanco’s own Carajás mineral project, covers roughly 100 square kilometres of ground, and Avanco has identified that mineralisation across the potential strike extension could exceed four kilometres.
The option allows Avanco to acquire the site in one of two ways; completing 14,000 metres of drilling within two years to ascertain JORC-compliant measured and indicated resources, at which point the Avanco can begin acquisition payments of $US0.04 per pound (roughly $0.11 per kilogram) of copper to Vale, capped at $3 million per annum and not including inferred resources.
Alternatively, Avanco can exercise its option with or without drilling be agreeing to a non-JORC compliant estimation of 400,000 tonnes of copper at $US0.04 per pound.
The managing director of Avanco, Tony Polglase, was delighted with the deal and called it an opportunity to significantly increase production and longevity within the region.
“We are delighted to close this transaction with Vale and believe this is testament to Avanco’s credibility in Brazil,” he said “[as well as] our ability to grow our footprint in Carajás.”
Western Australian-based Avanco has a growing presence in Brazil, with a focus on its 100 per cent-owned high-grade Antas copper mine, which commenced production in 2016. In addition to Antas and the new Pantera acquisition, Avanco also has two other projects in Brazil; Centrogold and Pedra Branca, which are estimated to start production in 2019 and 2020, respectively.