Australia-based Brazilian Metals Group Limited (BMG) has announced that it will acquire the Carrapato iron ore deposit near Belo Horizonte, Minas Gerais State, Brazil for $38 million payable over four years.
This acquisition will contribute to the company's strategy of complementing its existing large scale iron projects in northern Minas Gerais with smaller scale, high grade projects with near-term production potential.
According to the statement, an exploration target for Carrapato has been set at between 53 million mt and 62 million mt, at grades of 35.2 percent to 41.1 percent iron. Following due diligence, the company expects to start early production.