Centaurus sells Brazilian mine for $1.7m

Centaurus Metals has announced that it is selling its Candonga DSO iron ore project in Brazil to the Brazilian group Ecosinter – Indústria de Beneficiamento de Resíduos for R$4 million (A$1.69 million).

The two companies have entered a binding heads of agreement, and Ecosinter has paid Centaurus an initial R$400,000 (A$169,000) deposit.

Additionally Centaurus has announced that it has completed a A$300,000 capital raising through a share placement to selected shareholders.

Centaurus says the sale agreement will have no effect on their other Brazilian iron interests: the Jambreiro iron ore and Conquista DSO projects.

Funds raised through the Candonga sale and capital raising are expected to be directed towards the company’s Mombuca gold project.

Managing director Darren Gordon said the funding “will allow us to continue focused gold exploration activities at Mombuca while also allowing us to progress discussions regarding the potential sale or joint venture of our other Brazilian iron ore projects.”

In April this year Centaurus announced that it could no longer afford to develop the Candonga site, despite bringing it to a development-ready state.