Brazilian-focused gold mining and development company Serabi Gold has signed a conditional agreement to acquire 100% of the issued share capital and inter-company debt of Anfield Gold subsidiary Chapleau Resources.

The acquisition comprises the Coringa gold project in the Tapajos gold province in Para, Brazil.

Under the terms of the agreement, in exchange for the share capital, Serabi will make an aggregate payment of $22m to Anfield in a phased manner.

Serabi Gold CEO Michael Hodgson said: “Coringa is an advanced gold project that we have been interested to acquire for some time and know well. It always appeared to us to be an excellent bolt-on opportunity to expand Serabi’s production and leverage our existing infrastructure and management.

“We can both reduce the upfront construction and development costs, as well as generate operating costs synergies with our existing operations.”

“Anfield’s recent NI 43-101 compliant feasibility study for Coringa shows robust economics as a stand-alone project and I am sure that, with our experience and resources, we can both reduce the upfront construction and development costs, as well as generate operating costs synergies with our existing operations.”

The acquisition is set to give Serabi access to Chapleau Brazil’s mineral rights consisting of seven concessions totalling 13,648ha, including Coringa, in addition to a 10% interest in the Patty joint venture (JV), covering 616 mining claims in Nevada, US.

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Located 200km from Serabi’s current Palito mining operation and process plant, Coringa contains an indicated mineral resource of 195,000pz of gold at 8.36g/t and an inferred mineral resource of 181,000oz at 4.32g/t.

Based on a feasibility report, the project is estimated to have an average production rate of 32,000oz per annum, a total mineable reserve of around 160,000oz of gold, as well as a post-tax internal rate of revenue (IRR) of 30.8%.

The transaction is subject to completion of due diligence by Serabi, approval of the shareholders of Anfield and the TSX-V, as well as approval of Serabi’s secured lender.