18/09/2019 - 15:27

Big River pockets $2.75m to underpin Brazilian DFS

18/09/2019 - 15:27

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Big River has cashed in its Meteoric shares for a cool $2.75m, issued as part of the sale consideration for its Juruena and Novo Astro projects in central Brazil in May. The company will now utilise the funds to progress exploration and resource development drilling at its Borborema gold project, where a DFS is underway.

Photo by Freddie Collins on Unsplash

Big River Gold, an ASX-listed Brazilian explorer, has cashed out 50,000,000 Meteoric shares at $0.055 per share for a cool $2.75m. The shares were issued as part of the sale consideration for its Juruena and Novo Astro projects in central Brazil during May.

Post sale, Big River has still maintained some exposure to Meteoric via $1.5m worth of scrip, to be issued upon the incoming party reaching certain milestones at the Juruena and Novo Astro gold projects.

These terms include the definition of a gold mineral resource developed in accordance with JORC-compliant standards of at least 400,000 ounces and then upon Meteoric’s decision to mine.

The Executive Director of Big River, Andrew Richards, acknowledged the significant success that the Board and management of Meteoric had achieved since acquiring the project in March.

Meteoric has recently unearthed visible gold in diamond drilling core from the Juruena project. With that project already hosting an established high-grade resource containing 261,900 ounces of gold, Big River may not have to wait long for Meteoric to attain the magic 400,000 ounces to acquire another $750.000 worth of Meteoric shares.

The initial funds will be directed towards progressing exploration and resource development drilling ahead of the scheduled completion of a definitive feasibility study for Big River’s Borborema project that holds a 2.3 million ounces gold resource currently.

In retrospect, this seems like an exquisite outcome for Big River, with Meteoric’s share price ballooning by 450% since the shares were originally issued to Big River.

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

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