Business
Search Minerals announces non-binding letters of intent for business combinations with two tin companies in Brazil
TORONTO , Aug. 20, 2013 /CNW/ - Search Minerals Inc. ("Search" or the "Company") (TS...
About this update from Search Minerals Inc.
[{"type":"text","content":"\n\n\nTORONTO, Aug. 20, 2013 /CNW/ - Search Minerals Inc. (\"Search\" or the \"Company\") (TSXV: SMY) is pleased to announce that it has signed two non-binding\n Letters of Intent (\"LOIs\") with Mineração São Francisco de Assis Ltd. (\"MSFA\") and Carlos Mena Resources Ltd. (\"CMR\"), two privately held companies, each dedicated to the development and\n operation of tin assets in Brazil. The LOIs outline the general terms\n and conditions pursuant to which Search, MSFA and CMR would be willing\n to complete one or more transactions resulting in a combination of\n their respective business operations (the \"Transactions\"). The LOIs were negotiated at arm's length, and, ultimately, the\n outcomes are independent from one another. The assets are located in\n proven tin jurisdictions with previous and current mining activities,\n and they have been extensively drilled for resource estimation.\n\n\nMSFA owns and operates one producing tin mine and a concentration plant\n near São Félix do Xingu in the state of Pará, in Northern Brazil. A\n second alluvial mining plant is ready to commence operation in the next\n three months, which will bring current tin production capacity to 960\n metric tonnes per year. The project, also known as the Mocambo Project,\n is accessible via paved road, with daily flights out of the nearby\n cities of São Félix do Xingu and Mocambo. Work done to date includes\n 1,684 drill holes, for a total of 10,390m drilled within the areas\n currently being mined. Additional exploration targets are located\n within the borders of MSFA's mineral rights, including a large\n paleo-channel, as well as additional primary tin and tungsten\n (wolframite) targets on the Serra do Mocambo hill.\n\n\nCMR owns the mineral rights for the Arara Project, with occurrences of\n tin, niobium, tantalum, and rare-earth oxide. A Brazilian company,\n Grupo Paranapanema, owned and operated the Arara Project from 1975 to\n 1989, with historical alluvial production of 5,900 tonnes of tin. From\n 2002 to 2012, artisanal mining work took place under a cooperative\n system, managed by CFC Amazônia (a company associated with CMR).\n Historical tin production from this period is estimated at about 3,600\n tonnes. Work done to-date under CMR's management includes 412 drill\n holes, for a total of 12...