THE BOURSE WHISPERER: Centaurus Metals (ASX: CTM) has been granted three Mining Leases (Concessão de Lavra) that comprise the tenement package at the company’s Jambreiro iron ore project in Brazil.
The Mining Leases were granted by the Ministry of Mines and Energy (MME) in Brazil and have been officially gazetted in the Diário Oficial da União (DOU).
Centaurus considers the Leases to represent a key strategic asset for future mining operations at Jambreiro as well as helping the company complete the funding process for the development of the Jambreiro project.
While the grant of the Mining Leases was not required to enable construction to commence at Jambreiro, Centaurus explained it will ensure it is able to commence operations and generate positive cash flows on completion of the construction process.
“While we already had the necessary approval required to start construction on site in the form of the previously granted Installation Licence (LI), the grant of the Mining Leases represents the culmination of the approval process with the Mines Department (DNPM) and the Ministry of Mines and Energy and marks a further key milestone in our development process,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.
“It will also greatly assist with our funding process, which in turn will clear the way for us to commence construction of a one million tonnes per annum project at Jambreiro in the coming months under the new development plan announced just before Christmas.
“From this initial production base – and with all approvals secured for up to three million tonnes per annum of production at Jambreiro – the company can quickly expand production as cash flows are generated and market forces allow.
“2014 is set to be a transformational year for Centaurus and it’s great to kick off the New Year with this very important piece of news.
“The grant of the Mining Leases clearly demonstrates that there are no approval-related impediments to commencing operations at the project and should further reduce the financing risk, putting us in a strong position as we enter what is shaping up as a very busy period for the company.”