Ardent Mines Limited today announced it has entered into a Memorandum of Understanding (MOU) with the owners of Rio Sao Pedro Mineracao Ltd. (RSPM), a Brazilian entity that owns land suitable for potential gold mining near Paracatu, Brazil, in which Ardent expects to acquire 100 percent of RSPM via share exchange.
Ardent CEO Leonardo Riera said the property, known as Fazenda Lavras, is in close proximity to Kinross Gold in Paracatu, the largest producing mine in Brazil. Preliminary evaluations indicate reserves of approximately 5.7 million ounces of gold on the property. In addition to this property, RSPM owns the mineral rights on more than 1,000 acres of adjacent properties.
“The geologists’ reports indicate that the two properties have similar geological formations, so we are very excited about the potential of this acquisition, which we have named Vale du Ouro (Gold Valley),” Riera stated in the press release.
In consideration for the acquisition of RSPM, Ardent will issue 14,957,650 shares of Ardent common stock, representing 50 percent of issued and outstanding equity shares of Ardent as of the date of their issuance to the sellers of RSPM.
The transaction is expected to be complete upon fulfillment of customary closing conditions, including the completion of a thorough geology survey, completion of audited financial statements, acquisition of all necessary government approvals to commence gold mining on the property, completion of due diligence, and the execution of detailed final agreements.
“RSPM is in the process of applying for all environmental permits and gold production licenses in Brazil; we are closely collaborating with the owners, and expect to conclude due diligence with a target closing of the acquisition in late November or early December of this year,” Riera stated.
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