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The acquisition was made with a consideration of $200,000 plus taxes and legal costs as well as a 3% net smelter return royalty for minerals rights that cover a total 40,483 hectares in the new iron ore district of Brazil’s north-eastern state of Rio Grande do Norte, it announced on Wednesday November 27.
“This move into Brazil fits in with Latin Resources’ strategy of developing projects close to port and infrastructure to enable near-term production,” its md, Chris Gale, said.
There are two new public railroads due for construction that will pass through the region and enable access to two large ports.
The project provides potential for the production of pellet feed with low levels of contaminants, according to Latin Resources.
The Rio Grande do Norte State is the host of two exporting iron ore mines – the Bonito mine owned by MHAG and the Saquinho Mine operated by Zamin Resources.
Latin Resources is a mineral exploration company focusing on projects in Latin America. It has a portfolio of projects in Peru.
Australia-listed Latin Resources Limited has acquired the Borborema iron ore project in Brazil from Rio Tinto Exploration.