Investment firm to buy Rio Grande do Norte tungsten mine
Date added: 17th November, 2009 at 09:44
(view all articles from November, 2009)
An Australian firm has agreed a provisional deal to purchase commercial property in Rio Grande do Norte.
The agreement gives Wavenet International the option to acquire the Bodo tungsten project, which is located 220 km west of state capital Natal.
Australian business and investment news site Proactive Investors reported that the tungsten mine is currently operating profitably, albeit on a small scale.
However, it has the potential to produce far more than it currently does, the article stated.
The contract agreed between the site's current owner and Wavenet will allow the firm to mine in the area and explore for new deposits. A 30-year lease with an additional 30-year option has been agreed and registered with the Brazilian Mines Department.
Wavenet suffered pre-tax losses of A$660,014 (£364,801) during the last tax year, which it attributed to lower sales from the Australian technology arm of the company due to the recession.