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Jaguar Signs Accelerated Earn-In Agreement to Divest Gurupi Project; Plans to Repay Higher-Cost Brazilian Debt Facility and Improve Working Capital
Jaguar Signs Accelerated Earn-In Agreement to Divest Gurupi Project; Plans to Repay Higher...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"\n\n\n\nJaguar Signs Accelerated Earn-In Agreement to Divest Gurupi Project; Plans to Repay Higher-Cost Brazilian Debt Facility and Improve Working Capital\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, Sept. 18, 2017\n\n\n\nTSX:JAG\n\n\n\nTORONTO, Sept. 18, 2017 /CNW/ - Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX:JAG) is pleased to announce that it has entered into an accelerated earn-in agreement (the \"Agreement\") with Avanco Resources Limited (\"Avanco\") (ASX:AVB), pursuant to which Avanco will earn up to a 100% ownership interest in the Gurupi Project (\"Gurupi\" or the \"Project\") after meeting some short-term milestones and making a series of payments to Jaguar. The Project is located in the state of Maranhão, Brazil, and includes the Cipoeiro and Chega Tudo deposits found in a mainly unexplored 72-kilometre trend. Jaguar, through a wholly-owned subsidiary, holds mineral concessions totaling 140,332 hectares. The last feasibility study on the Project was prepared on January 31, 2011, by TechnoMine Services LLC, which is filed under the Company's profile on SEDAR (www.sedar.com). \n\nMain Terms of the Accelerated Earn-in Agreement\n\nUpon the satisfactory completion of certain closing conditions, the Agreement provides Avanco with the right to earn 100% of Jaguar's interest in the Project by paying to Jaguar an aggregate cash payment of US$4 million in two instalments of US$2 million each. Upon achieving clear title and access to the Project, Jaguar will receive in aggregate an additional US$5 million of cash payments, received in a series of 10 instalments of US$500,000 per month. The majority of the Avanco US$9 million in payments are expected to be paid to Jaguar in 2017 and 2018 fiscal years.\n\nWithin 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 the Project with mineral reserves in excess of 500,000 ounces of gold. Any delay in this milestone will result in a project d...