Aguia signs JV with Vicenza

THE BOURSE WHISPERER: Potash and phosphate exploration and development company Aguia Resources has signed a Joint Venture agreement with Vicenza Mineracao e Participacoes S.A. over the company’s Mata da Corda phosphate projects (MCPP) located in the state of Minas Gerais in Brazil.

Under the terms of the agreement Vicenza now has an exclusive option to acquire 70 per cent of the MCPP over a three year period.

Vicenza can earn this interest through a combination of:

Cash payments totalling R$1 million (A$0.56 million);
 
A minimum exploration spend of R$7 million (A$3.9 million); and

The minimum exploration spend will include at least 10,000 metres of drilling.

Aguia Resources currently holds a ground position of approximately 300,000 hectares in the Mata da Corda region, which the company describes as a “province” style holding within 150km of the three largest phosphate mines in Brazil.

 

Location of the Mata da Corda project relative to operating
phosphate mines, major fertiliser bulk blenders and infrastructure
including roads, railways, power and water. Source: Company announcement

 

These include Araxá – Vale (290 million tonnes at 14.88 per cent phosphate), Tapira – Vale (744Mt at 8.35 per cent phosphate) and Catalão – Anglo/Vale (203Mt at 8.80 per cent phosphate).

These three mines account for 95 per cent of the phosphate rock production in Brazil.

Aguia Resources said it was pleased to enter into a JV agreement with Vicenza, adding that it considered the company to be a partner that can focus on rapidly advancing the Mata da Corda project.

This is anticipated to occur through an intensive drilling campaign.

“We welcome the involvement of Vicenza to further advance the projects where our technical team has done an excellent job identifying and compiling a large land package and making surface phosphate discoveries for follow-up drilling,” Aguia Resources managing director Simon Taylor said in the company’s announcement to the Australian Securities Exchange.

“With this joint venture in place it will allow us to direct more effort and funds at our Rio Grande phosphate projects in southern Brazil where our first drilling program returned excellent results with further assays pending.

“We will now fast track Rio Grande through the commencement of beneficiation studies and advancing the discovery towards delineation of Mineral Resource estimate that can be reported in accordance with the JORC Code with further drilling.”