International Goldfields JV to merge exploration projects in Brazil

THE BOURSE WHISPERER: International Goldfields (ASX: IGS) has entered into a Memorandum of Understanding to form an incorporated Joint Venture between the company’s 93 per cent-owned private entity Latin Gold and Brazil-based private entity group Biogold Investment Fund.

The deal will result in Latin Gold will transfer assets of its 100 per cent-owned subsidiary Amazongold Pesquisas Minerais to Biogold’s 100 per cent-owned subsidiary CIA Minerado Ouro Paz S.A. in exchange for 35 per cent ownership in Ouro Paz.

The JV entity will hold over 2,700 square kilometres land position in the Juruena Belt and an approved JV expenditure budget, which includes up to 6,000m of drilling for additional delineation and exploration drilling for 2013.

“For IGS, the JV provides a consolidated land position in the Ana prospect area, with the adjacent União project host to a larger proportion of the mineralised shear zone,” international Goldfields said in its ASX announcement.

“The JV also introduces additional highly qualified Brazilian national staff and management to the project and additional funding for exploration that will advance the project at an accelerated rate.”