Mineral exploration company Brazil Resources (BRI) has acquired a 100% interest in the Cachoeira gold project in Pará, north Brazil.
The transaction was completed under the terms of the previously announced share purchase agreement dated July 10, 2012, under which BRI purchased all outstanding shares of Luna Gold, which owned the project.
The company paid $500,000 in cash and issued 1,428,000 common shares of BRI, amounting to a total of $12m at the rate of $1.40 for each share of Luna Gold.
The project is situated across 4,742ha and contains two mining and three exploration licenses.
Cachoeira gold project has a total indicated resources of 446oz at 1.11g/t Au and total inferred resources of 221.3oz at 1.27g/t Au.
Brazil Resources chairman Amir Adnani said, "We are eager to continue the development of the Cachoeira Project, building upon the exploration and development work previously completed by Luna and its predecessors.
"We continue to assess other potential opportunities in the prolific Gurupi Gold Belt, with a view towards adding to the company's four current projects here," said Adnani.
Brazil Resources president and CEO Steve Swatton said that the Cachoeira gold project acquisition is compliant with the company's expansion goals.
"Moving forward, Brazil Resources plans to coordinate with the local community and commence a work program on the property that will include, among other things, additional drilling at the Cachoeira Project with the goal of expanding and further defining the current resources, and completing additional studies and reports in connection with fulfilling license requirements," Swatton said.