Orosur Mining Inc. has entered into a non-binding Letter of Intent (LOI) with Canadian listed Meridian Mining SE, in order to finalise a joint venture (JV) on Meridian’s Ariquemes Tin project in Brazil.
The LOI provides the company with an exclusivity period of 90 days to complete due diligence and to finalise a JV over Ariquemes, the broad terms of which have already been discussed between the parties.
While final terms may differ, it is expected that the company will have the right to earn 75% equity in the Ariquemes project over a 4 year period (commencing 1 Jan 2022) by spending US$3 million in two stages:
- Earn 51% interest by spending US$1 million over a 24 month period.
- Earn an additional 24% interest by spending a further US$2 million over a subsequent 24 month period.
Both parties will work diligently to complete JV negotiations within the 90 day period and announce full details at that time however given the non-binding nature of the LOI, shareholders should note that there is no guarantee that a binding agreement will be entered into.