Kerman & Co advises Evocutis Plc on investment in Tungsten mining operation in Brazil
December 18, 2014
Kerman & Co. LLP advised AIM listed Evocutis Plc on its acquisition of an initial 10% interest in Brazil Tungsten Holdings Limited (“BTHL”) which owns a 25 year lease (with the option to extend) over the producing Bodó Tungsten Mine in Rio Grande do Norte, Brazil. The money raised will be used to expand the mine.
Evocutis acquired the 10% interest by subscribing for new shares (“Subscription Shares”) that represent a 10% shareholding in BTHL. Evocutis also secured an exclusive option to increase its holding in BTHL to 20% within 60 days by investing a further US$1million towards mine expansion, subject to certain conditions.
David Lenigas, Evocutis Chairman, commented: “Evocutis sees the specialty high tech metals sector as an exciting place to invest and these funds will be specifically directed at increasing tungsten production over the coming year from the Bodó Tungsten Mine in Brazil.”
About the Bodo Tungsten Mine, Brazil:
The Bodó Tungsten Project is located in Brazil’s Seridó Tungsten Province in the State of Rio Grande do Norte. This is the most important tungsten producing region and hosts the majority of Brazil’s tungsten reserves.
Bodó is a high-grade tungsten operation employing 96 people, and is currently operating at the rate of about 60 tonnes of ore production per day from underground operations. The ore is being processed through an onsite treatment plant with a current capacity of about 200 tonnes per day. Tungsten concentrates are sold to the global export market under an existing sales agency agreement with Wogen Pacific Limited.
Kerman & Co’s Corporate and Capital markets team advised the UK Oil & Gas Investments PLC on the transaction.