The Bonfim property in the northeastern Brazilian state of Rio Grande do Norte will be explored, following a deal between
Rio Tinto can earn a 60% interest in the property from Verena by spending US$2 million over three years. Once Rio has vested its 60%, Verena can elect to maintain its 40% as a working interest, or be diluted to a minimum of 10%. Interests below 10% are replaced with a 1.5% net smelter return royalty. Verena also retains an option, once diluted, to gain its 40% interest back by funding the next US$2 million in property expenditures.
Rio plans to carry out mapping, soil geochemistry and drilling on the property, which hosts a stratabound scheelite horizon in a syncline. The scheelite body contains gold and bismuth, as well as tungsten, and operated from 1969 to 1981 as a producer of tungsten.
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