Aguia Resources (ASX:AGR) should trade higher after it secured a $2,000,000 placement with Sulliden Mining Capital Inc., comprising 40,000,000 shares at $0.05 per share - 31.58% premium to the last traded price.
Sulliden have also been granted a royalty equal to 1% of the net smelter returns from Aguia's Rio Grande phosphate project in Brazil, and all properties contiguous to that project.
Aguia has the right to buy back the royalty for a payment of US$1,000,000 in cash and/or shares at any time, up to three years from the date of issue of the 40,000,000 shares.
Sulliden’s financial commitment will allow Aguia to explore aggressively and unlock project value.
Earlier this month, made a new grassroots discovery of a sediment-hosted phosphate mineralisation at Rio Grande.
So far three beds of black phosphorite have been mapped in the Cerro Preto Target, along strike lengths that vary from 700 metres to 5 kilometres, with thickness up to 200 metres.
Systematic rock chip sampling delivered assays with grades up to 20.4% phosphate, and trenching returned 17.5 metres at 10.3% phosphate which included 5 metres at 15.52%; and 8.5 metres grading 9.83%.
Further exploration work, including drilling, is being planned with the intention of delineating a resource.
Brazil is Latin America’s biggest economy and is heavily reliant on imports of up to 50% of its phosphate and 90% of its potash needs.
Aguia controls four large projects in Brazil, all located close to existing infrastructure.
The company is capitalised at around $10 million.
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