Australia-based Magnum Mining & Exploration has exercised an option to buy an iron ore project in Brazil’s south-eastern Minas Gerais state, the company announced on Friday April 13.
The acquisition remains subject to Magnum being satisfied with the results of its due diligence investigations.
“The company will provide updates to the market as and when it completes its due-diligence enquiries,” the miner said.
Magnum entered into an option and exclusivity agreement in September 2011 to acquire all of the fully paid issued shares in Irongates (Aust) Pty (IAPL).
IAPL owns 99% of Irongates Brasil Recursos Minerais (IBRML), which holds contractual rights to acquire the Emicon Mineração Terraplenagem iron ore project in Brazil.
The project consists of an in situ exploration project and a sinter feed project containing alluvial tailings.
“Due to the alluvial nature of the sinter feed project, the sinter feed fines present an early production opportunity,” the company noted.
The project is located nearly 18km from Brazil’s MRS railway network, which provides excellent infrastructure logistics for the transportation of its iron ore to major ports off the coast of the states of Rio de Janeiro and São Paulo.
Magnum did not disclose any time frame or output goal for the project, which is still unnamed.
Ana Paula Camargo