LONDON (Alliance News) - Evocutis PLC Thursday said the final contracts have been signed that allow the company to complete its acquisition of a stake in the Bodo tungsten mine in Brazil.
In December, the natural resource investment company entered into a binding term sheet to acquire a 10% interest in Brazil Tungsten Holdings Ltd, which owns the producing Bodo tungsten mine in Rio Grande do Norte in Brazil by investing USD1 million to expand the mine.
Evocutis said it has now paid the final installment of USD750,000 to Brazil Tungsten, which is being used to expand the mine.
Evocutis has an exclusive option to double its stake in the company within the next 60 working days by investing an additional USD1 million toward the expansion.
The Bodo mine is currently processing 50 to 60 tonnes of ore per day through an on-site treatment plant that has the capacity to treat 200 tonnes of ore per day. Tungsten from the mine is being sold to global export markets, it said.
The funds provided by Evocutis will be used specifically to refurbish an existing incline shaft and advance underground development so that daily ore production can be tripled and also to modify the plant, which is expected to improve tungsten recoveries from approximately 65% to an anticipated recoveries of over 80%.
"Evocutis is pleased to conclude this key initial strategic acquisition in the exciting Bodó Tungsten Mine in Brazil, and we look forward to participating in expanding tungsten production significantly over the coming year," said Chairman David Lenigas.
"The directors of Evocutis believe significant further growth potential exists from both continued underground development and several potential open pit mining areas already identified which have the potential to support continued cost-effective growth to levels of production a multiple above current levels," said the company.
Evocutis shares were up 5.5% to 0.290 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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