Enova Mining (ASX:ENV) will be proceeding with an option agreement, following confirmation that due diligence has de-risked the Poços, Juquia, Resplendor, Carai, Santo, Antônio, and Salinas East permits in Brazil.
On 18 December 2023, Enova, which has a market capitalisation of $13.45 million, entered into a binding option agreement with vendors B Geologia E Mineração LTDA (RTB), Mineração Paranaí, and Rafael Viola Mottin to acquire these Brazilian tenements.
Under the agreement, Enova has made a $30,000 cash payment and will also make a $120,000 cash payment to RTB.
The company will also issue 190 million shares and 100 million unlisted options at $0.012 with a 5-year expiry date, to RTB within 5 days after shareholder approval.
Enova will be finalising and distributing a notice of general meeting to shareholders as soon as possible.
Upon receiving shareholder approval, Enova can complete the transaction and transfer of assets to a Brazilian registered Enova-held company.
The company says that on completing due diligence, the land package is considered prospective and of ‘exceptional’ exploration value.
Further, the assets provide a sound basis to expand on Enova’s operations in a ‘positive’ mining business environment like Minas Gerais, Brazil.
The majority of the tenements strategically sit in Brazil’s prolific Poços de Caldas / Caldeira Rare Earth Complex and Lithium Valley in Minas Gerais.
Enova Mining is a minerals explorer focused on its critical minerals and rare earths assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Enova Mining
