Orosur Mining has signed a non-binding letter of intent (LOI) with Meridian Mining to form a joint venture (JV) on Meridian’s Ariquemes tin project in Brazil.
The LOI has an exclusivity period of 90 days to complete due diligence and finalise a JV to advance the tin project.
However, the firms also highlighted that the possibility of a binding agreement is still uncertain.
Orosur said: “Both parties will work diligently to complete JV negotiations within the 90 day period and announce full details at that time however given the non-binding nature of the LOI, shareholders should note that there is no guarantee that a binding agreement will be entered into.”
Orosur will have the option to spend $3m in two stages to earn a stake of up to 75% in the mining concessions owned by Meridian subsidiary Meridian Mineração Jaburi over a four-year period.
In the initial stage, the Canadian firm will invest $1m over a two-year period to earn a 51% stake in the project.
With further spending of $2m, the firm will have the option to earn an additional 24% over the subsequent two years under stage II.
The Ariquemes project comprises an extensive land package in Brazil’s second-largest tin field.
Meridian Mining expects the proposed partnership with Orosur to allow it to maintain its strategic focus on the Cabaçal Cu-Au Project.
Meridian Mining CEO and president Dr Adrian McArthur said: “Ariquemes is prospective for tin, columbite, and tantalite, and is a strong ‘brownfields’ project, hosting extensions to known mining centres partly concealed by a shallow veneer of younger sediments.
“The first generation of tin mines in Ariquemes was the result of surface discoveries, there is excellent potential for the next generation of discoveries through exploration success targeting from blind or shallow occurrences.”