PERTH (miningweekly.com) – Metals hopeful Centaurus Metals has completed the acquisition of the Aurora copper project, in Brazil, formalising a strategic alliance with local company Terrativa Minerais SA.

Under the strategic alliance now executed, Centaurus has gained full ownership of the Aurora project, while giving Terrativa a number of opportunities to re-enter the project at various development milestones.

Centaurus would now issue shares to the value of A$150 000 to Terrativa to acquire the Aurora project and would allow Terrativa president Ingo Wender to subscribe for A$200 000 worth of shares in the company.

The share placement would happen at the same time as a planned A$350 000 fully underwritten share purchase plan, which Centaurus said would support the company’s ongoing exploration activities.

The new strategic alliance agreement had also seen a restructure of the existing option agreement over the Conquista direct shipping ore (DSO) project and the Mombuca gold project.

The restructure has resulted in Centaurus agreeing to an early exercise of the option over the Conquista project, on revised and favourable terms, and would see Centaurus issue shares instead of having to make a cash payment for the project.

This would allow ASX-listed Centaurus to direct future expenditure on the project towards value-adding exploration activities.

The share issue would be subject to shareholder approval.

At Mombuca, the previously agreed exercise payment to Terrativa had been replaced by a 2% production royalty over any future sales of minerals from the tenement.

Should the tenement be sold to a third party, Terrativa had the option to forego the production royalty in favour of a 25% share of the sale proceeds.

Centaurus MD Darren Gordon said on Wednesday that the strategic alliance with Terrativa would play a key role in shaping the company’s ongoing exploration activities.

“Centaurus has an excellent, long-established relationship with Terrativa, and we are very pleased to have secured their support as a major shareholder. Terrativa is one of Brazil’s most successful private exploration groups and this alliance provides us with an outstanding partner with detailed knowledge of the Brazilian resources sector.”