[miningmx.com] — Horizonte Minerals, the AIM-listed exploration and development company focused on mineral projects in Brazil, on Monday announced that it has signed a $4.5m or about R32.7m earn-in agreement with AngloGold Ashanti.
The earn-in agreement is on Horizonte Minerals’ 100% owned Falcao gold project, located in the Carajas Mineral Province of northern Brazil.
In terms of the agreement, AngloGold can earn into 51% of the Falcao project by spending $4.5m on exploration and development over three years.
This amount is made up of a first year cash commitment of US$900 000, or R6.5m, on exploration funding, which would fast track a drill programme to commence to test the resource potential of the project.
Additional funding of $1.6m, or R11.6m, would be spent in the second year and $2m, or R14.5m, in the third year.
Horizonte Minerals said upon earning into 51%, the Falcao project would convert into a joint venture and AngloGold may elect to earn an additional 19% to increase its participating share to 70% by funding a pre-feasibility study.
“The Falcao project is a significant gold anomaly in the southern part of the Carajas Province defined by previous exploration work carried out on the property,”
said Horizonte CEO Jeremy Martin, adding that Falcao has the potential to host a major gold deposit.