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Meteoric to sell Juruena Gold Project to Keystone

Published by
Global Mining Review,


Meteoric Resources NL has entered into a legally binding term sheet for the sale of the Juruena Gold Project in Brazil for up to US$22 million.

Highlights:

  • Meteoric has executed a legally binding Agreement to sell the Juruena Gold Project in Brazil for up to US$22 million (approximately AUS$30 million) to Keystone Resources Ltd, a wholly-owned subsidiary of Alchemist Investments Inc., a holding group with relevant experience in developing mines globally, including Brazil.
  • Consideration in staged payments:
    • US$2.5 million cash upon completion.
    • US$7.5 million cash six months after completion.
    • US$10 million cash 12 months after completion.
    • 2% gross Royalty (capped at US$2 million cash).
  • Meteoric to accelerate the development of the Palm Springs Gold Project, whilst seeking to maximise shareholder value through acquisition and investment in complimentary resources projects.

Managing Director, Andrew Tunks, comments:

“We are pleased to announce the sale of our Juruena Gold Project in Brazil for up to US$22,000,000. I am very proud of the work we have completed in firstly identifying then securing Juruena followed by our successful exploration of the project over the past three years. During this time the team has produced some truly amazing drilling results ultimately resulting in a substantial Mineral Resource of 1.9 million t at 6.3 g/t Au for 387 000 oz. We consider this the ideal moment at which the pass Juruena to a group far better placed than ourselves to now develop the project, allowing Meteoric to focus on what it does best, which is the identification, acquisition and advancement of projects through high quality exploration focusing on results generated at the drill bit.

“The sale price of up to US$22 million means Meteoric is fully funded to accelerate its exploration programs at the Palm Springs Gold Project in WA, whilst having a substantial cash balance to actively seek complimentary investments and acquisitions.

“Having delivered this result for shareholders, I feel this is the right time for me to step down from the position of Managing Director into a Non-Executive Director role. I personally would like to thank shareholders and the Board for the opportunity to lead Meteoric since 2018.”

Pat Burke, Meteoric Chairman, said:

“On behalf of the Board and our shareholders, I would like to thank Andrew for his excellent leadership over the past four years. Andrew is equally at home in the field and the boardroom, and is always available to shareholders and investors, a great retail MD. We will miss his leadership, but are very happy he is remaining in a non-Executive role. The Board has commenced a search for his successor to lead Meteoric’s next chapter on the back of this excellent result with the sale of Juruena.”

Read the article online at: https://www.globalminingreview.com/mining/06062022/meteoric-to-sell-juruena-gold-project-to-keystone/

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Gold mining news South American mining news Brazilian mining news