Australian Mines (ASX:AUZ) has entered a binding term sheet with Cabral Resources, a subsidiary of GoldMining (TSX:GOLD), and Majestic D&M Holdings, to potentially earn up to 80% of the Boa Vista Gold Project in Brazil. Australian Mines is an Australian-based exploration company focused on sourcing minerals for the global battery industry. The company also has interests in a range of other commodities, including gold.
As part of this new investment, Australian Mines will undertake a capital raise of $2.5 million, with Ignite Equity and GBA Capital acting as joint brokers. The placement will involve the issuance of 312.5 million shares at $0.008 per share, along with a one-for-two free attaching option exercisable at $0.022, expiring on 2 February 2027.
Under the agreement, Australian Mines can earn its stake in the Boa Vista Gold Project through staged exploration, development expenditure, and achievement of specific milestones. The company will make an initial payment of C$55,000 (approximately $61,608 AUD) and issue $1 million worth of shares to Cabral and Majestic, subject to shareholder approval. To initially earn a 51% interest, Australian Mines must spend at least $4.5 million over three years on exploration, complete 6,000 metres of diamond core drilling, and make annual payments of C$250,000 per year for three years, for a total of CAD$750,000..
CEO Andrew Nesbitt highlighted the Boa Vista Gold Project’s potential, noting the rarity of its broad, continuous zones of disseminated gold mineralisation in a region known for high-grade, structurally focused gold systems. He stated that the project offers compelling near-surface mineralisation with district-scale exploration upside, supported by existing data and historical drilling results. Australian Mines intends to conduct close-spaced light detection and ranging, and a high-resolution drone magnetic survey, followed by a drilling program expected in the second half of 2025. The company will also update the historical resource to JORC-2012 standards and advance metallurgical, environmental, and baseline studies.
