- Aguia Resources has been granted a preliminary licence for the development of its Brazilian phosphate project
- This grant comes a day after a new Managing Director was appointed
- The licence represents a significant milestone for the company as it marks a de-risking in the path of construction and production
- Shares in Aguia are up 8.57 per cent, trading for 19 cents per share
Aguia Resources has been granted a preliminary licence (LP) for the development of the Três Estrades Phosphate Project in Brazil.
The LP was granted after the approval of the Environmental Impact Assessment (EIA) by the Rio Grande do Sul State Environmental Agency (FEPAM).
“I am extremely pleased that on my first day as Managing Director I can report to the Aguia Resources shareholders that the most significant milestone to date in the development of the Três Estrades Phosphate Project and the Company as a whole,” Managing Director Fernando Tallarico said.
“The granting of the LP allows us to immediately implement all the programs and requirements we have presented in our EIA so we can progress towards granting of our next LI (installation permit) in the next 12 months and commence construction,” he added.
The granting of the LP is a key milestone in the mine permitting and development process for the Três Estrades Phosphate Project.
A LP can only be granted after approval of the EIA by FEPAM. It is regarded as one of the most challenging mine permits to obtain.
The granting is a major milestone in the development of any mining project in Brazil and represents a substantial de-risking in the path to construction and production.
The next phase of development will be obtaining the installation permit (LI). This LI provides the necessary authority to begin construction and start developing the mine site.
The LI is granted by fulfilling the conditions of the LP, approval of the mine development plan (PAE) by the National Mining Agency, and if it demonstrates economic feasibility.
The permit is expected to take up to 12 months to be granted and after which, construction can begin.
Aguia has already begun the permit process by investigating various mine and processing site options and different flow sheet scenarios.
This would potentially allow a significant reduction in start-up capital, a simpler flow sheet, and a faster route to the commencement of production and cash flow.
By submitting the LI to the National Mining Agency, Aguia will obtain the Mining Concession from the Mining and Energy Ministry.
This final step will be the grant of the operating permit (LO), which requires the inspection of the constructed mine and processing plant to ensure compliance with all Brazilian mining codes.
Once the LO is granted Aguia can begin mining and processing phosphate from Três Estradas.
Aguia will continue to provide further updates regarding the project when significant milestones are reached.
Shares in Aguia are up 8.57 per cent and trading for 19 cents apiece in a $35.14 million market cap.