Perth-based miner Brazilian Metals Group has acquired the Carrapato iron deposit in Brazil’s Minas Gerais state in a deal worth $US38 million.
The Carrapato deposit is adjacent to Vale’s Corrego de Feijao mine, which produced direct shipping ore at a grade of 66.6 per cent Ferrous.
The project is also an extension of Itaminas’ Sarzedo mine, which has a reported resource of 1.3 billon tonnes of iron ore.
Brazilian Metals called the acquisition a significant step as it attempts to complement its existing large-scale iron projects in Minas Gerais with smaller scale, higher grade developments.
The $US38 million transaction price is payable over four years, subject to a four-month evaluation period.
At 12:15PM WST, Brazilian Metals shares were down 6 per cent, trading at 4.7 cents.