Brazilian mining company Nexa Resources, through its subsidiary, Votorantim Metals Canada, has signed a definitive arrangement agreement to acquire Karmin Exploration for $70m (£57m).
With Karmin indirectly holding a 30% interest in the Aripuanã zinc project located in Mato Grosso, Brazil, the completion of the transaction enables Nexa to own 100% of the Aripuanã project.
According to a technical report, the Aripuanã project holds an estimated 13 years of mine life with a potential mine life extension of up to 6 years.
Nexa CEO Tito Martins said: “The acquisition consolidates our ownership of the Aripuanã Project, providing us marketing and sales flexibility to improve our margins. We believe this is a strategic and accretive deal for Nexa, while it also benefits Karmin.”
Arex, Link, and Ambrex are the mineralised zones at the Aripuanã zinc project
According to Nexa, the Aripuanã project holds a significant untapped exploration potential to extend the mine life beyond its mineral reserve and resource life.
Nexa said that the transaction is expected to address the operating and tax synergies within its operations and would enable it able to integrate Aripuanã’s zinc concentrate within its smelters in Brazil.
The transaction is expected to be completed by the end of 2019.
Nexa, in a statement, said: “Given the existing exploration drilling campaigns, there is a potential to discover new deposits in satellite bodies (i.e. Babaçu and Massaranduba targets), which can be integrated in the future with the Aripuanã Project.
“Considering the nature and genesis of the deposit, there are important indicators to support the existence of other mineralized structures that could be part of a larger mineral trend.”
Currently, Nexa owns and operates five long-life underground mines – three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil . It is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil.
