Beadell consolidated landholding at Tucano

PERTH (miningweekly.com) – Gold miner Beadell Resources has entered into an agreement to consolidate the land package of its Tucano project, in Brazil.

The company inked an agreement to acquire the issued capital of Mineracao Vale dos Reis (MVR), which currently holds a 30% interest in joint venture (JV) tenements surrounding the Tucano gold project.

Beadell holds the remaining 70% interest in the JV tenements, which cover some 576 km².

MVR will be paid an initial $300 000 on closing of the transaction, as well as three further payments of $500 000 over a 12-month period from the date of closing. Along with the $1.8-million in cash, MVR will also receive a 0.75% net smelter royalty on any gold or other precious metals produced from the former JV ground.

Licences currently 100% held by Beadell, including the Tucano mining lease, will not be subject to this royalty.

“The MVR transaction is a major step forward and consolidation of such a dominant land position in a very underexplored greenstone belt is very exciting,” said Beadell MD and CEO Simon Jackson.

“We will expand exploration activity onto the former JV ground with a view to not only adding near mine ounces, but also to search for the next Tucano. Coupled with the ongoing exploration in the underdrilled Tucano mine corridor, we believe that the company has considerable scope to continue to add ounces.”