Latin Resources acquired the Borborema iron ore project from Rio Tinto Exploration, Brazil (Rio Tinto Desenvolvimentos Minerais).
The company said the acquisition was in line with its stated strategy and objectives of identifying Iron ore projects in South America if the opportunity arose and if the project identified was close to port and infrastructure. Latin considers the Borborema iron ore project in Brazil fits the bill and has the potential for near term production of iron ore in conjunction with a suitable joint venture partner.
The project was suggested to Latin Resources by its exploration manager, Carlos Spier, who has been conducting exploration work over a six-month period in the Rio Grande do Norte State.
The northeast of Brazil has only recently been explored for iron ore and several new projects have been developed in the region. The Rio Grande do Norte State hosts two iron ore mines: the Bonito mine, owned by MHAG and the Saquinho Mine, operated by Zamin Resources. The consideration payable to Rio Tinto is USD 200,000 plus taxes and legal costs (approx. USD 45,000) and a 3% net smelter return royalty for 24 exploration claims (36,158 hectares) and four application claims (4,325 hectares).
