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Avanco Resources looks to acquire Guapore Nickel Copper PGM Project

Avanco Resources (ASX: AVB) has entered into a binding letter of intent to acquire the Guapore Nickel Copper PGM Project.

The Project is situated in the south west of Mato Grosso State, close to the Brazilian and Bolivian border, a highly prospective region for the discovery of new nickel sulphide deposits.

The acquisition of the Guapore Project is a further expansion to Avanco’s portfolio of highly prospective nickel and copper projects. The transaction for the Guapore Project is subject to satisfactory due diligence which is well advanced.

Drilling is well advanced at the Touro Nickel Project in the Carajas with assays expected in the coming weeks.

Avanco is pushing ahead with the development scenario for the Rio Verde Copper Project and should soon be able to announce the granting of a Trial Mining Licence.

The company has recently announced a non renounceable entitlements issue of approximately 204,492,947 shares at an issue price of 2.5 cents each, on the basis of two shares for every three shares held on the record date, together with one free attaching option for every five shares applied for and allotted, to raise approximately $5,112,323 (Offer).

The offer is fully underwritten by CPS Securities.

Funds raised will ensure that the Carajas Copper Project is advanced to a production decision in 2010 and will allow for the completion of the current drill testing of the Touro Nickel Sulphide Project.

Funds raised will also allow for the evaluation and acquisition of additional copper and nickel projects in Brazil.

Tony Polglase, Executive Director, said shareholders will be able to maintain exposure to the company’s highly prospective properties in the world class Carajas Province of Brazil.

These include the high grade Carajas Copper Project where the company has previously published an inferred and indicated JORC Resource of 210,000t at 11.65% copper, containing 24,400t of copper.

The attaching options will be the existing (AVBOB) class of option and the company will apply to have these options listed on the ASX.

Disclosure: The author holds no positions in the company