AVB 0.00% 16.5¢ avanco resources limited

TN backgrounder

  1. 9,114 Posts.
    lightbulb Created with Sketch. 4278
    Below are some highlights from the AVB historical ASX releases in relation to TN.
    They are a good background on the tenement and posted solely to give that background.

    http://www.avancoresources.com/cont...resOptionOverAvancoIronOreProperty19Aug10.pdf

    The Company is very pleased to advise that its subsidiary AVB
    Mineracao Ltda has entered into a binding agreement with Brazilian
    major Vale S.A. (Vale), to provide them an option to acquire the
    Trindade North Property.
    Trindade North is believed to be highly prospective for iron ore and is
    situated proximal to Vale’s giant N4-N5 iron ore mine in the Carajas,
    Brazil. The final agreement has been signed and will be executed as a
    partnership with Vale being granted exclusive exploration rights for
    up to 3 years. On satisfying conditions precedent, Vale will have earned
    the right to exercise an option to acquire sole ownership of the property.
    KEY PROVISIONS OF THE AGREEMENT
    1. For a two year option term, Vale will pay Avanco a nonrefundable
    fee of US$350,000 on signing and receipt of
    regulatory permissions to drill.
    2. Vale should drill at least 2,500m at Trindade North within the
    first year.
    3. After one year Vale must pay Avanco US$600,000 for the
    second year. To retain and extend the option for a third year,
    Vale must make a further payment of US$1,000,000 to
    Avanco.
    4. Based on drilling results Vale will pay Avanco a royalty for
    any in-situ JORC compliant iron ore resources in the
    measured and indicated categories.
    5. On Avanco receiving funds from Vale inclusive of 1, 3 and 4
    (above) estimated at US$10,000,000 or more, Vale will have
    satisfied conditions precedent and will have earned the right
    to complete the acquisition for sole ownership of Trindade
    North. The total sum of all qualifying payments to Avanco is
    capped at a maximum value of US$40,000,000.
    6. In the event economic mineralisation other than iron ore is
    discovered, both parties will renegotiate terms with Vale
    retaining preferential rights to first refusal.
    7. Avanco can elect a representative to participate in the
    exploration programme.

    http://www.avancoresources.com/content/wp-content/uploads/2014/09/IronOreUpdate12Jan11.pdf

    The Company is very pleased to advise that it has obtained the required
    permissions for drilling at the Trindade North Iron Ore Project in the
    Carajas. The drill programme will be undertaken by Brazilian major Vale
    SA (Vale) and rig mobilisation is expected over the coming weeks.
    Exploration of Trindade North has been ceded to Vale through the
    previously reported option agreement1
    . On satisfactory completion of
    drilling, resource determinations and payment of US$10m to $40m, Vale
    will have satisfied conditions precedent and will have earned the right to
    100% ownership of Trindade North.
    IRON ORE HIGHLIGHTS
     Trindade North is situated proximal to Vale’s giant N4-N5 iron
    ore mine in the Carajas, Brazil. The area is very prospective for
    new iron ore discoveries.
     Vale has been granted exclusive exploration rights and can earn
    the right to exercise an option to acquire sole ownership of the
    property.
     Vale will advance Avanco US$250,000 for facilitating drilling
    permissions.
     The Vale transaction has the potential to deliver significant cash
    flow to Avanco of US$10m to US$40m
     Vale is expected to start drilling soon and regular news is
    anticipated over the coming months.

    http://www.avancoresources.com/cont...09/ValeStartsDrillingAvancoIronOre15Apr11.pdf

    The Company is very pleased to announce that Vale SA (Vale) has
    commenced drilling at the Trindade North Iron Ore Project (Figure 1).
    Four rigs are currently operational and early exploration appears very
    encouraging with significant widths of Banded Iron Formation (BIF)
    recorded in drill core.
    HIGHLIGHTS
     Vale has commenced drilling Avanco iron ore in the Carajas
    region of Brazil.
     Four rigs now drilling and another mobilising.
     Significant widths of BIF have already been intersected,
    suggesting early exploration success (Fe results TBA1
    ).
     Vale’s giant N4–N5 mine is located close to Trindade North.
     The Vale-Avanco agreement has potential to generate payments
    of between $10m and $40m to the Company.
     Transaction with Vale clearly demonstrates that Avanco is well
    established in the region.

    http://www.avancoresources.com/cont...ecuresIronOreRightsForAFurtherYear15Sep11.pdf

    The Company is pleased to advise that Vale S.A. (“Vale”) has secured
    the “rights” to Avanco’s iron ore project for a further twelve months.
     Compliant with the Iron Ore Agreement1
    , Vale has secured
    their rights into the second year of the Option by having
    advanced Avanco US$600,0002
    .
     Having already completed the maiden drill programme the
    current extension facilitates Vale’s further exploration which
    includes detailed field recognisance.
     Vale has prepared a maiden resource. The Company has
    acknowledged that the outcome exceeds the minimum required
    for Vale to exercise their right to acquire the project.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.