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Jaguar Mining Completes Sale of Gurupi Project; Receives Initial US$4 Million Cash Payment To-Date
Jaguar Mining Completes Sale of Gurupi Project; Receives Initial US$4 Million Cash Payment...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"\n\n\n\nJaguar Mining Completes Sale of Gurupi Project; Receives Initial US$4 Million Cash Payment To-Date\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Oct. 31, 2017\n\n\n\nTSX: JAG\n\n\n\nTORONTO, Oct. 31, 2017 /CNW/ - Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX:JAG) today reported that it has completed the sale of its Gurupi Project (\"Gurupi\") to Avanco Resources Limited (\"Avanco\") by transferring the quotas (i.e. equity shares) in MCT Mineração Ltda. that are currently held directly or indirectly by the Company, to Avanco, pursuant to the previously-announced accelerated earn-in agreement (the \"Agreement\").  \n\nUnder the terms of the Agreement, and following the satisfactory completion of certain closing conditions, Avanco earned 100% of Jaguar's equity interest in Gurupi by committing to pay to Jaguar US$9 million in aggregate cash payments. To date, Jaguar has received an initial aggregate cash payment of US$4 million, in two installments of US$2 million each in September and October 2017. The additional US$5 million is expected to be paid to Jaguar in a series of 10 instalments of US$500,000 per month during fiscal years 2018 and 2019. \n\nIn addition, within 24 months of the initial US$4 million payment, Avanco will arrange to have published an Australian Joint Ore Reserve Committee (JORC) code compliant technical report completed regarding Gurupi with mineral reserves in excess of 500,000 ounces of gold. Any delay in this milestone will result in a project delay fee payable to Jaguar of US$250,000 per six months of delayed period. Within 60 months of the initial US$4 million payment, Avanco will aim to commission the Gurupi mine and plant. Any delay in this commissioning milestone will result in a separate project delay fee payable to Jaguar of US$250,000 per six months of delayed period.\n\nAs part of the Agreement, Jaguar will retain a life of mine Net Smelter Return (\"NSR\") royalty (\"Royalty\") from production at Gurupi. The Royalty will be 1% NSR on the first 500,000 ounces of gold or go...