Mundo Minerals has quit its interests in Brazil with the sale its wholly-owned Brazilian subsidiary Mundo Mineracao Ltda, known as Mundo Brazil, to with a group of Brazilian high net worth individuals for US$1.
Mundo said its subsidiary’s net asset deficiency at the time of disposal, after substantial asset impairment charges recognised as at 31 December 2011, was approximately R$15.8M ($8.4M). In light of this, the gross consideration for disposal of the subsidiary is US$1 under the conditional binding term sheet signed by the buyers.
Mundo has additionally revealed that ASX-listed BBX Minerals has settled the second tranche payment of $425,000 for the acquisition of Mundo Brazil’s interest in its Chapada concession.
That money will be used to meet on-going care and maintenance costs at the Engenho underground mine, legal and advisory costs associated with the court supervised process and administration costs necessary to remain in compliance with our statutory obligations. A third and final tranche of A$350,000 is due by no later than 31 July 2012.
Under the terms of the Mundo Brazil sale, Mundo Australia is also required to transfer to the purchasing consortium loans made by Mundo Australia to Mundo Brazil over the past 10 months. These loans total approximately $3.29 million.
On completion of the sale, Mundo will no longer has an interest in any of its assets in Brazil, including the Engenho, Olhos and Tocantins Joint Venture projects in Brazil.
However, Mundo retains ownership of its Peruvian subsidiary, Mundo Minerales SAC, which in turn holds 100 per cent of the Torecillas Gold Project.
