First Property Secured In Northern Brazil
Centaurus Metals (ASX:CTM) has secured possession of a key part of the land that covers its 100%-owned Jaguar Nickel Sulphide Project in northern Brazil following the completion of a Possession Agreement.
The agreement covers an area of approximately 1,010 hectares and provides the company with unfettered access and full possession of land for the long-term benefit of the Project.
The property contains a number of farm-houses and structures that can be used as part of the ongoing exploration and development programmes at Jaguar and also provides a direct access point to a river which may form a future water source for the Project.
Centaurus’ existing site camp is located on the property and the previously existing short-term land access arrangement has now been superseded by the current perpetual Possession Agreement.
Managing Director, Darren Gordon, said securing full possession rights to the property is the first step in de-risking the potential future development of Jaguar in relation to land access and will eliminate some future operating costs that would otherwise have been payable.
The possession rights have been secured for total consideration of R$10.7 million (~A$2.5 million), with the consideration to be paid in instalments over the next three years. Upfront consideration under the agreement of R$5.0 million (~A$1.2 million) has now been paid.
Mr Gordon said negotiations in respect to two further Possession Agreements are well advanced and progressing as planned.
A Jaguar Base Case Scoping Study is also nearing completion with finalisation and release of the study expected in the next week. From an exploration perspective, four diamond rigs are continuing to drill both in-fill and step- out extensional holes at the Project, while a new RC drill contractor is planning to mobilise a single RC rig to site shortly to drill the extensive greenfields targets identified by the Company across the tenement area.