Meteoric has signed a binding agreement to sell its Juruena gold project in Brazil to Keystone Resources for a total consideration of up to A$30m ($22m)

Under the terms of the binding agreement, Keystone is expected to make an upfront payment of $2.5m in cash upon completion of the transaction.

The company will pay the remaining consideration at different stages, including a $7.5m cash payment after six months and a $10m payment within 12 months from closing, along with and 2% gross royalty.

Juruena is estimated to contain a JORC resource of 1.9MT for 387koz of gold at 6.3 g/t, comprising three separate but adjacent gold deposits.

Meteoric Resources managing director Andrew Tunks said: “I am very proud of the work we have completed in firstly identifying then securing Juruena followed by our successful exploration of the Project over the past three years.

“The sale price of up to $22m means Meteoric is fully funded to accelerate its exploration programs at the Palm Springs Gold Project in WA, whilst having a substantial cash balance to actively seek complementary investments and acquisitions.

“Having delivered this result for shareholders, I feel this is the right time for me to step down from the position of Managing Director into a Non-Executive Director role.”

Keystone is a wholly-owned subsidiary of Alchemist Investments, which has significant experience in mine development worldwide.

The company will implement the mine development and operation through its Brazilian subsidiary, led by Top Capital Partners Investimentos and Target Latin America.

Meteoric intends to use proceeds from the sale of the Juruena gold project to advance the exploration programmes at its Palm Springs Gold Project in Western Australia.

Meteoric will start an Induced Polarisation (IP) survey over selected targets at Butchers Creek north and west, Golden Crown, and Halls Gully, soon.

Meteoric chairman Pat Burke said: “On behalf of the Board and our shareholders, I would like to thank Andrew for his excellent leadership over the past four years.

“Andrew is equally at home in the field and the boardroom and is always available to shareholders and investors, a great retail MD.

“We will miss his leadership, but are very happy he is remaining in a non-Executive role. The Board has commenced a search for his successor to lead Meteoric’s next chapter on the back of this excellent result with the sale of Juruena.”