Vancouver-based NovaCopper Inc. has sold its Titiribi property — along with its subsidiary that owns the lucrative mining area — to Brazil Resources Inc. In exchange for the property and subsidiary, Sunward Investments Limited, the Canadian mining company will receive five million common shares of Brazil Resources and one million warrants.
The property, which sits roughly 40 miles southwest of Medellín in the department of Antioquia, is within the Titiribi mining district that has proven to be a significant gold and silver producing area. NovaCopper acquired it in June 2015 along with its acquisition of Sunward Investments. The company said it made the sale in order to focus its efforts on mining in other parts of the world.
“While we believe the Titiribi property has excellent exploration potential and a strong local team, the sale allows NovaCopper to focus on its high-grade copper, zinc, and precious metals projects located in northwest Alaska,” said Rick Van Nieuwenhuyse, president and CEO of NovaCopper.
The five million common shares that NovaCopper is receiving are currently valued at around $10.3 million USD. Each warrant included in the deal can be traded for one common share of Brazil Resources, for a period of two years from the transaction’s closing date, at a price of $3.50 Canadian dollars. The deal is expected to become official on September 1, pending regulatory approval and “satisfaction of certain closing conditions,” according to NovaCopper.
“The project is being placed in good hands under the management of Brazil Resources, who have experience in South America and a growth strategy of building a portfolio of assets that provides its shareholders meaningful optionality and leverage to the price of gold,” said Van Nieuwenhuyse.