Centaurus Metals (ASX:CTM) will acquire the Rio Novo Project in Brazil from Ore Investments, adjoining with the company’s Boi Novo Copper-Gold Project in the Carajás mineral province.
The company will pay the vendor $42,500 on execution of the tenement transfer.
Centaurus will be required to invest a minimum of $850,000 in the first 12-month period, while also paying $85,000 to the vendor to retain interest in the project after this period.
The company will invest the same amount in phase two for another 12 months, with another $170,000 payment to the vendor after electing to retain interest.
At Ore’s election, vendor payments will be made via cash or Centaurus shares. Ore will retain a 1% royalty over products produced at the project, which has the option to be converted to 25% share of proceeds upon project sale to a third party.
Upon publishing a JORC-compliant maiden resource, hosting a minimum of 100,000 tonnes of copper equivalent or 42 months from execution, Centaurus will pay $1.7 million to Ore, which will be doubled on the grant of a mining lease.
The company intends to apply exploration tools such as fixed-loop electromagnetic (FLEM) and downhole electromagnetic (DHEM) surveys to the project, while two thirds of the area remains underexplored.
Rio Novo has not previously been tested with electromagnetic geophysics, along with not undergoing soil sampling programs in the western half of the tenement.
Centaurus will follow up survey activities with a drilling program, intended to begin after completion of planned drilling at Boi Novo.
The area has previously been drilled for 1,465m and 11 holes. Intersections include 2.4m @ 4.08% copper and 0.25 grams per tonne gold from 86.8m; 4.1m @ 0.87% copper and 2.29g/t gold from 36.9m; and 13.7m @ 0.32% copper and 0.73g/t gold from 51.3m.
Managing Director Darren Gordon says the acquisition of Rio Novo is a strategic move, expanding the company’s total landholding in the region to around 75km² and directly adjacent to its Boi Novo Copper-Gold Project.
“Importantly, historical drilling at Rio Novo has already returned some promising copper intersections, with the mineralisation styles similar to those observed at both Boi Novo and the nearby BHP (ASX:BHP) and Oz Minerals Grota Rica deposit,” Gordon says.
“Our team will integrate Rio Novo into our broader Boi Novo regional exploration strategy, with the aim of rapidly refining high-priority copper drill targets ahead of a maiden drill program.
“Their early work at Rio Novo has laid a solid foundation, and their willingness to structure a deal aligned with key exploration milestones reflects a shared commitment to unlocking the project’s full potential.”
Centaurus Metals is a mineral explorer primarily focused on developing the Jaguar Nickel Sulphide Project, also located in the Carajás Mineral Province in Brazil.
Write to Maddison Elliott at Mining.com.au
Images: Centaurus Metals
