Canada-based Jaguar Mining has signed a share purchase agreement to acquire the Pitangui gold project and the remaining stake it didn’t own previously in the Acurui gold project, both located in Brazil, from IAMGOLD’s subsidiary, AGEM.

According to the terms of the agreement, Jaguar Mining will buy the assets by issuing 6.3 million common shares to AGEM. The shares have an aggregate value of $9m.

Besides, the company will grant AGEM a net smelter returns (NSR) royalty on the Pitangui and Acurui projects.

Jaguar Mining president and CEO Vern Baker said: “We are very pleased to announce that we have reached this agreement to purchase IAMGOLD’s Brazilian Assets which includes the Pitangui Project, which is close to our MTL Complex and the Acurui Tenements Package contiguous with our Paciencia Complex.

”This transaction furthers our corporate strategy to leverage our extensive existing infrastructure to drive production growth via increased plant throughput.”

Located about 110km northwest of Belo Horizonte in Minas Gerais State, the Pitangui project comprises mineral exploration licenses and license applications covering the Archean-aged Pitangui greenstone belt.

The Pitangui greenstone belt is situated near Jaguar Mining’s principal operating assets in the Iron Quadrangle which contains multi-million-ounce gold deposits like Morro Velho, Cuiabá, and São Bent.

Currently, an exploration joint venture (JV) between Jaguar Mining and IAMGOLD, the Acurui gold project contains exploration tenements located near the former’s Paciência plant in the Iron Quadrangle.

Jaguar Mining is the operator of the Acurui project.

Subject to customary conditions and approval from the Toronto Stock Exchange, the transaction is anticipated to be complete later this month.