Two junior companies have joined forces to acquire and develop advanced stage gold and gem properties in Brazil. Brazilian Resources (CDN) and William Resources (TSE) have entered into a joint venture agreement, and now plan to explore a newly optioned gold property of about 4,450 acres where proven and probable gold reserves of more than 300,000 oz. have been identified. The acquisition is still subject to a due diligence review.
A feasibility study has been completed for the property which indicates that a heap-leach facility could produce about 17,000 oz. gold per year.
The joint venture will be capitalized by a US$1.5 million loan from Brazilian, which in turn will have a 50% interest in the joint venture and receive a 4% net smelter royalty on all projects. Loan payments will be made to Brazilian on a priority basis using 50% of quarterly net cash flow. Brazilian Resources retains all interests in its 50,000-acre Cedro Bon gold properties in the state of Mato Grosso, and is currently conducting site visits with several other potential joint venture partners.
A second-phase diamond drill program is planned for this project, and will begin shortly.
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