Horizonte Minerals has signed an agreement to acquire the Glencore Araguaia Nickel Project (GAP) in north central Brazil.
Both GAP and Horizonte's Araguaia projects are located in Neo-Proterozoic Araguaia Fold Belt, a 1,000km long and 150km-wide orogenic zone situated between the Amazon Craton to the west and the San Francisco Craton to the east.
Horizonte Minerals CEO Jeremy Martin said: "We have been able to negotiate a unique transaction leveraging the current depressed commodity markets.
"The combination of the two projects will produce one of the largest undeveloped saprolite nickel resources globally.
"We are confident that we can generate ore for the first ten years for the single line Rotary Kiln Electric Furnace (RKEF) plant grading +2% nickel."
According to Horizonte, the nickel laterite deposits in both projects are developed on peridotites that form part of mafic-ultramafic complexes, representing tectonic remnants of ophiolites emplaced in metasediments.
Horizonte has agreed to pay $8m to Xstrata, which holds the title to GAP under a conditional asset purchase agreement between the company and Glencore Canada's wholly owned subsidiary Xstrata Brasil Exploraçâo Mineral.
The deal is subject to the registration of Horizonte's wholly owned subsidiaries and is also conditional upon other customary conditions to closing.