TSX: JAG
TORONTO, Oct. 31, 2017 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX:JAG) today reported that it
has completed the sale of its Gurupi Project ("Gurupi") to Avanco
Resources Limited ("Avanco") by transferring the quotas (i.e.
equity shares) in MCT Mineração Ltda. that are currently held
directly or indirectly by the Company, to Avanco, pursuant to the
previously-announced accelerated earn-in agreement (the
"Agreement").
Under the terms of the Agreement, and following the satisfactory
completion of certain closing conditions, Avanco earned 100% of
Jaguar's equity interest in Gurupi by committing to pay to Jaguar
US$9 million in aggregate cash
payments. To date, Jaguar has received an initial aggregate cash
payment of US$4 million, in two
installments of US$2 million each in
September and October 2017. The
additional US$5 million is expected
to be paid to Jaguar in a series of 10 instalments of US$500,000 per month during fiscal years 2018 and
2019.
In addition, within 24 months of the initial US$4 million payment, Avanco will arrange to have
published an Australian Joint Ore Reserve Committee (JORC) code
compliant technical report completed regarding Gurupi with mineral
reserves in excess of 500,000 ounces of gold. Any delay in this
milestone will result in a project delay fee payable to Jaguar of
US$250,000 per six months of delayed
period. Within 60 months of the initial US$4
million payment, Avanco will aim to commission the Gurupi
mine and plant. Any delay in this commissioning milestone will
result in a separate project delay fee payable to Jaguar of
US$250,000 per six months of delayed
period.
As part of the Agreement, Jaguar will retain a life of mine Net
Smelter Return ("NSR") royalty ("Royalty") from production at
Gurupi. The Royalty will be 1% NSR on the first 500,000 ounces of
gold or gold ounce equivalents sold; 2% NSR on sales from 500,001
to 1,500,000 ounces of gold or gold ounce equivalents; and 1% NSR
on gold sales exceeding 1,500,000 ounces of gold or gold ounce
equivalents.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining,
development, and exploration company operating in Brazil with three gold mining complexes, and a
large land package with significant upside exploration potential
from mineral claims covering an area of approximately 64,000
hectares. The Company's principal operating assets are located in
the Iron Quadrangle, a prolific greenstone belt in the state of
Minas Gerais and include the Turmalina Gold Mine Complex and Caeté
Gold Mine Complex (Pilar and Roça Grande mines, and Caeté Plant)
which combined, are expected to produce approximately 87,000 -
92,000 ounces of gold in 2017. The Company also owns the Paciência
Gold Mine Complex, which has been on care and maintenance since
2012. Additional information is available on the Company's website
at www.jaguarmining.com.
About Avanco Resources Ltd.
Avanco is a Brazilian focused mining exploration and development
company, targeting exploration and near- term production from
copper and gold projects. Avanco's Board of Directors and
Management team have extensive global resource industry experience,
particularly in Northern Brazil
where they have recently commissioned the Antas copper-gold mine
on-schedule and under budget. Avanco has offices in Perth, Australia; Rio de Janeiro, Brazil; and Parauapebas,
Brazil.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking statements and
information are provided for the purpose of providing information
about management's expectations and plans relating to the future.
All of the forward-looking information made in this news release
are qualified by the cautionary statements below and those made in
our other filings with the securities regulators in Canada.
Forward-looking information contained in forward-looking statements
can be identified by the use of words such as "are expected", "is
forecast", "is targeted", "approximately", "plans", "anticipates",
"projects", "anticipates", "continue", "estimate", "believe" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved. All statements, other than
statements of historical fact, may be considered to be or include
forward looking information. This news release contains
forward-looking information regarding, among other things, the
expectations regarding whether certain future post-closing
conditions or milestones will be completed in accordance with the
terms of the Agreement, expected sales, production statistics, ore
grades, tonnes milled, recovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated
future production, costs of production, capital expenditures, costs
and timing of the development of projects and new deposits, success
of exploration, development and mining activities, currency
fluctuations, capital requirements, project studies, mine life
extensions, restarting suspended or disrupted operations,
continuous improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions with respect
to forward-looking information contained herein, including, among
other things, assumptions about the completion of future
post-closing conditions or milestones, as contemplated by the
Agreement; the estimated timeline for the development of the
Company's mineral properties; the supply and demand for, and the
level and volatility of the price of, gold; the accuracy of reserve
and resource estimates and the assumptions on which the reserve and
resource estimates are based; the receipt of necessary permits;
market competition; ongoing relations with employees and impacted
communities; political and legal developments in any jurisdiction
in which the Company operates being consistent with its current
expectations including, without limitation, the impact of any
potential power rationing, tailings facility regulation,
exploration and mine operating licenses and permits being obtained
an renewed and/or there being adverse amendments to mining or other
laws in Brazil and any changes to
general business and economic conditions. Forward-looking
information involve a number of known and unknown risks and
uncertainties, including among others: the risk of Jaguar not
meeting the forecast plans regarding its operations and financial
performance; uncertainties with respect to the price of gold, labor
disruptions, mechanical failures, increase in costs, environmental
compliance and change in environmental legislation and regulation,
weather delays and increased costs or production delays due to
natural disasters, power disruptions, procurement and delivery of
parts and supplies to the operations; uncertainties inherent to
capital markets in general (including the sometimes volatile
valuation of securities and an uncertain ability to raise new
capital) and other risks inherent to the gold exploration,
development and production industry, which, if incorrect, may cause
actual results to differ materially from those anticipated by the
Company and described herein. In addition, there are risks and
hazards associated with the business of gold exploration,
development, mining and production, including environmental
hazards, tailings dam failures, industrial accidents and workplace
safety problems, unusual or unexpected geological formations,
pressures, cave-ins, flooding, chemical spills, and gold bullion
thefts and losses (and the risk of inadequate insurance, or the
inability to obtain insurance, to cover these risks). Accordingly,
readers should not place undue reliance on forward-looking
information.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking information
made in this news release, see the Company's most recent Annual
Information Form and Management's Discussion and Analysis, as well
as other public disclosure documents that can be accessed under the
issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com.
The forward-looking information set forth herein reflects the
Company's reasonable expectations as at the date of this news
release and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. The forward-looking information contained in this news release
is expressly qualified by this cautionary statement.
SOURCE Jaguar Mining Inc.