Valterra said that net proceeds from the private placement will be used to acquire a private Brazilian company that has a purchase agreement to acquire a 100% interest in the 172-hectare freehold Lima property for a purchase price of C$500,000, as well as initial exploration work in preparation for bulk sampling at Lima, and for general working capital.

“Management believes that this is a rare opportunity to acquire a highly-prospective gold property at exceptionally attractive terms which has the potential to be fast-tracked to production,” Valterra said in a media release.

According to the Canadian miner, Lima is a laterite-type gold project with easy logistics in the Poconé district of the western Mato Grosso state.

“The project comes with a proven operational team in a mature mining district with very attractive economics,” the brief states. “Existing mines in the district require no blasting as a result of deep weathering and consist of free-digging open-pit operations, typically to a depth of up to 80 metres.”

Lima is immediately adjacent to the currently producing Edmur gold mine.