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Jaguar Mining Announces Non-cash Royalty Exchange Agreement With AngloGold Ashanti on CPA Royalties
TORONTO, ON / ACCESSWIRE / August 14, 2023 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"Jaguar Mining Announces Non-cash Royalty Exchange Agreement With AngloGold Ashanti on CPA RoyaltiesTORONTO, ON / ACCESSWIRE / August 14, 2023 / Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX:JAG)(OTCQX:JAGGF) is pleased to announce that the Company has reached an agreement with a subsidiary of AngloGold Ashanti Limited (NYSE: AU)(\"AngloGold\") for a non-cash royalty exchange on royalties previously attached to its Paciência Gold Mining Complex (\"CPA\") under a historical accord, in exchange for another two mining rights (\"Carancas\" and \"Pacheca\"), located close to AngloGold's other operating assets (Lamego and Córrego do Sítio).CPA is located close to two of the Company's operating assets (Caeté and MTL Complexes) in the prolific Iron Quadrangle area of Minas Gerais, Brazil (Figures 1 & 2). The complex is comprised of two underground mines, Santa Isabel and Margazao, and a processing plant with capacity to treat approximately 1,750 tpd within approximately 9,000 Ha of contiguous permitted mining tenements. The CPA Plant was commissioned in April 2008 and commercial production was declared in December 2008. Total production during this period is estimated at approximately 1,755 Mt at an average grade of 3.06 g/t Au containing approximately 154,000 ounces of gold. The operation has been on care and maintenance since 2012.In the Company's most recent NI43-101 disclosure published in May 2023 (available on Sedar), CPA has an estimated Inferred Mineral Resource of 1.80 Mt at an average grade of 4.06 g/t Au, containing approximately 235,000 ounces of gold.In 2003, the Company executed a sale purchase agreement with AngloGold covering the three main individual tenements related to CPA. The agreement included payment, related commitments, and a up to 4.5% NSR Royalty that was payable to AngloGold from production at a gold price above US$510 per ounce. The two companies have been in ongoing discussions regarding restructuring the NSR which, in its original form, did not reflect current or projected market conditions.Vern Baker, President and CEO of Jaguar Mining stated: \"We are very pleased to announce that we have reached this agreement with AngloGold. The removal of the royalty attached to our CPA asset coupled with the large additional contiguous tenements package (previously under joint venture...