Brazil Resources (TSXV: BRI; OTCQX: BRIZF) aims to grow its gold resources through the acquisition of the large Titiribi gold-copper project in central Colombia.
The Vancouver-based junior, which has gold projects in Brazil and Alaska and a uranium joint venture in Saskatchewan, has agreed to buy Sunward Investments, a subsidiary of NovaCopper (TSX: NCQ; NYSE-MKT: NCQ) that owns 100% of Titiribi.
Brazil intends to pay 5 million shares and 1 million warrants exercisable at $3.50 per share for two years in exchange for Sunward. Based on its Aug. 17 close of $2.24 per share, the acquisition price is $11.2 million, excluding warrants.
“The acquisition is prospective and located in a good area with solid infrastructure,” Cantor Fitzgerald analyst Rob Chang writes. He has a “buy” and $3.45 target on the stock.
The Titiribi project sits 70 km southwest of Medellin in the Antioquia department, within the historical Titiribi mining district. The project is road accessible by paved highway from Medellin and has electrical power lines passing within 3 km, Brazil says.
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