Centaurus Metals (ASX: CTM) will pay a total of US$3 million for a granted exploration lease in Brazil, with the portfolio of tenements in the south-east of the country known as the Serra do Lontra Project.
An initial payment has already been made concurrent with the transfer of title, with additional payments to be made over the next 18 months based on the progress of exploration activities.
Centaurus said the project forms the initial basis of the company's strategy to export up 1 to 2 million tonnes annually of high-grade hematite to international markets by mid-2014.
Centaurus has established a 30 to 50 million tonne exploration target.
Darren Gordon, managing director, commented on the acquisition, saying "Based on the field visits undertaken during due diligence, the geological mapping work completed to date, and the fact that there is significant outcropping mineralisation at Serra do Lontra, we are confident that our exploration work will confirm the Project’s Exploration Target to support an export business from Brazil."
Importantly with the acquisition is the port of Ilhéus is only 140 kilometres away by sealed road, allowing for the ore to be trucked.
Exploration activities including ground magnetic survey work will commence almost immediately.