Canadian gold producer Eldorado Gold said it has gained complete ownership of the Vila Nova iron ore project in Brazil’s Amapa state.
The company has acquired the remaining 25% stake from private Brazilian company Mineracao Amapari in exchange for a net profit interest royalty of 10% plus a sliding scale royalty based on the operating margin of the project, Eldorado said.
Vila Nova contains proven and probable reserves, as of December 2008, of 9.2 million tonnes of ore at a grade of 61.0% Fe plus an inferred resource of 2.0 million tonnes at 61.2%.
The agreement simplifies and consolidates the ownership structure of Vila Nova without any additional upfront cost for the company, Eldorado president and CEO Paul N Wright said.
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