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Highlights

  • Australian Mines may earn up to 80% of Boa Vista through staged cash, equity, and exploration
  • Initial terms include CAD55,000 cash and shares valued at AUD1 million
  • GoldMining retains 20% interest if full option is exercised 

GoldMining Inc. (TSX: GOLD | NYSE American: GLDG) has signed a binding term sheet allowing Australian Mines Limited (ASX: AUZ) to earn up to an 80 percent interest in the Boa Vista Project in Pará State, Brazil. The total consideration across the staged agreement includes up to CAD7 million in cash and equity. 

GoldMining is a public mineral exploration company with a portfolio of resource-stage gold and gold-copper projects across the Americas. Its assets span Canada, the U.S., Brazil, Colombia, and Peru. The company also holds equity positions in Gold Royalty Corp., U.S. GoldMining Inc., and NevGold Corp. 

Under the agreement, AUZ will make an initial non-refundable cash payment of CAD55,000 and issue ordinary shares valued at AUD1 million (approximately CAD884,000). To earn an initial 51 percent interest, AUZ is required to spend at least CAD3,978,000 on exploration over three years, including a minimum of 6,000 metres of core drilling and three annual CAD250,000 payments. A JORC-compliant resource of 500,000 gold ounces, with at least 250,000 in the measured and indicated categories, must also be announced. 

A joint venture would be formed at the 51/49 stage. AUZ may then earn an additional 19 percent by completing a feasibility study with a reserve over 250,000 ounces and spending a minimum of AUD1 million annually on technical work. A final 10 percent interest, taking AUZ to 80 percent, may be acquired by paying the greater of CAD4,420,000 or a value linked to the mineral resource size, subject to a minimum 50 percent cash component. 

GoldMining currently owns an indirect 84.05 percent interest in the Boa Vista Project. The property covers 92 square kilometres and is located roughly 350 km from Itaituba. It contains multiple targets with past discoveries of visible gold in quartz veins and stockwork. The project is not part of the company’s existing global resource estimate.