8th Oct 2013 12:09
LONDON (Alliance News) - Blackrock World Mining Trust PLC Tuesday said it has reached a non-binding agreement with regard to a USD12 million net smelter return royalty investment with Avanco Resources Limited.
The company said the deal is in respect of Avanco's whole licenced area in Carajas, Brazil and the royalty would offer the company a 25% royalty payment on gold production and 2% on production of other metals.
Blackrock said the two parties will shortly begin to work on the heads of terms regarding the deal and sign any definitive legal documentation.
The company said that the royalty investment will be subject to the company achieving its mining licence and the publication of a resource statement for its Antas North site.
Blackrock shares were down 1.2% to 459.45 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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