Si6 Metals Increases JV Ownership on Future Brazil Acquisitions

THE BOURSE WHISPERER: Si6 Metals (ASX: Si6) has amended its original Joint Venture terms with its Brazilian Joint Venture partner Foxfire Metals.

Si6 Metals reached an agreement with Foxfire to amend the JV in relation to any future licenses acquired by the JV.

In February this year, Si6 finalised the acquisition of a 50 per cent interest in Foxfire’s Brazilian exploration portfolio.

The portfolio included 10 licenses comprising approx. 17,000 hectares in Brazil.

Under the amended JV any new projects acquired by Si6, its wholly-owned subsidiary Brazilian Ventures, or its wholly-owned subsidiary in Brazil, Brazilian Mining Ventures, will be incorporated into the partnership on the basis that Si6 will hold a 70 per cent and Foxfire 30 per cent JV interest in the acquired project (previously 50% Brazilian Ventures, 50% Foxfire).

Additionally, any expenditure incurred on new projects acquired will be included as part of Si6’s minimum $1 million expenditure commitment in the first 12 months of the JV.

“We are pleased to both improve our JV terms on future projects and strengthen our relationship with Foxfire as we jointly seek to align our shareholders’ interest to achieve the most rewarding outcome for both partners,” Si6 Metals managing director Jim Malone said in the company’s ASX announcement.

“Our joint plan is to grow our presence in Brazil by expanding the current exploration portfolio and capitalising on Foxfire’s expertise and in-country knowledge to identify opportunities that usually require significant time and capital to achieve in Brazil.

“The amended JV terms strengthen our position in Brazil where we are currently exploring for REE at REE-rich Poços de Caldas as well as lithium and REE in the Lithium Valley.”

 

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