by Kyle Morris
Orosur Mining Inc. said on Friday it has signed a joint venture agreement with Meridian Mining UK Society related to the Arikames tin project in Brazil.
The mining company said the terms of the agreement are largely those indicated in the letter of intent announced on July 7, in which it can spend $3 million over a four-year period to earn 75% interest in the project. The company can earn interest in two stages, the first earning 51% interest by spending $1 million over a 24-month period and the second earning 24% interest by spending $2 million over a 24-month period.
After the two phases, the two companies will jointly fund the project on a proportionate basis or reduce the net smelter royalty.
The joint venture required the formation of two new entities to hold exploration licenses and applications, which would include a top holding company in Canada and a local operating company in Brazil. This process will begin immediately, Orosur Mining said.
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