Gold mine deal to boost investment in Brazil
Date added: 24th August, 2010 at 10:45
(view all articles from August, 2010)
Categories: Natural Resources
Investment in Brazil is set to receive a boost over the next three years under a new deal between gold company Horizonte and AngloGold Ashanti.
The "earn in" agreement will see AngloGold earn a 51 per cent stake in one of Horizonte's prospective gold mines, the Falcao project in northern Brazil's Carajas mineral province, by spending $4.5 million (£2.9 million) on exploration activities over the next three years.
Under the terms of the deal, $900,000 will be invested in the site during the first year, followed by $1.6 million in the second year and $2 million in the third.
A fast-track drilling programme will now be carried out at the Falcao site to test the extent of its potential resources.
After it acquires a 51 per cent share of the project, AngloGold will have the option of obtaining a further 19 per cent by funding a pre-feasibility study for the development of commercial mining operations.
Horizonte chief executive Jeremy Martin said the Falcao project "has the potential to host a major gold deposit".
Based in Johannesburg, South Africa, AngloGold employs around 63,364 people and has established gold mining operations on four continents.
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