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
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
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