TORONTO (miningweekly.com) – TSX-listed Talon Metals has agreed to buy eight potash project areas in Brazil from privately-held Kmine Holdings, the firm announced on Monday.
The properties, in the Sergipe and Alagoas states, cover some 36 402 ha, for which Kmine either holds or has applied for potash exploration licences.
They are also located in the same sedimentary basin as Vale’s Taquari-Vassouras potash mine, which produced 607 000 t of the crop nutrient last year, Talon saore crushing machine namesid in a statement.
The company has agreed to pay $20-million over ten years (beginning with $375 000 on the closing of the agreement), part of which – up to a maximum of 47% – can be paid in smobile crushers and grinders supplierhares.
„The acquisition of the potash exploration licences from Kmine conforms to our strategy to acquire interests in holdings that have the potential to become substantial psmall portable gravel crusher in indiarojects,“ said Talon CEO Stuart Comline.
„It also underlines our belief that, under the current uncertain circumstances and a depressed commodity market, it is important to acquire strategic holdings in commodities that may have a more settled future.”
The company plans to begin exploring the properties immediately, and will also continue to look for additional potash and gold opportunities, he said.
Talon also announced on Monday it has been awarded the exploration rights to the Juruena Gold project, in Mato Grosso state, Brazil from the Departamento Nacional de Producão Mineral.
The company is undertaking a more detailed assessment of previous mining and exploration at Juruena to come up with the best approach to the project.
Talon is also continuing to conduct due diligence on Saber Energy’s coal-bed methane project, in Botswana, the firm reported.
Talon has an exclusive right to enter into a merger with Saber.
Shares in Talon Metals rose 73,7% on Monday, to 49,5 Canadian cents by 15:48 in Toronto.