Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Brazilian copper developer Avanco Resources (ASX:AVB) said today that it would double the company’s copper gold resources through the acquisition of the Pedra Branca Copper-Gold Project in Brazil’s Carajas Mineral Province from Xstrata Copper.
The project, located south of Rio Verde and only 15 km south of Vale SA’s giant Sossego copper-gold mine, is estimated to host a substantial copper-gold mineral resource of approximately 14.77 million tonnes. It also holds about 0.46 grams per tonne (g/t) gold and 0.98g/t silver for 192,000 tonnes of copper, as well as 218,000 ounces of gold, and 465,000 ounces of silver.
In consideration for the acquisition, Xstrata Copper would acquire a 15% interest in Avanco, and would become the company’s largest investor and cornerstone shareholder.
Avanco said it had been seeking to complement its activities at the Rio Verde project by acquiring a second, proximal, high value project and Pedra Branca deposit satisfied the criteria.
The Brazilian miner said that the strategic relationship with Xstrata Copper, fourth copper producer in the world, offers numerous opportunities for the company, including access to well-known technical and commercial expertise.
The acquisition comprises a 172,000 ha portfolio of 28 exploration licenses and applications, including the Pedra Branca deposit. The project area is situated on one of the main Carajas geological trends, and presented significant potential to increase its resource size as it remained open in all directions.
5 Comments
Depinto
Better buy these avb shares quick ! How many copper producers have a market cap under a BILLIONN DOLLARS !!
Guest
Better buy some shares before it goes through the roof!!!!!
Starline
Yes currently quite undervalued considering it’s starting to look like another Sandfire story only with more upside.
Baker1988
imo 45c by end of the year
Depinto
If they start mining within 5 months, it will be worth a lot more, closer to a $1 !!