Australia-based South American Ferro Metals Limited (SAFM) has announced that it has entered into a memorandum of understanding (MoU) with the owners of the property adjacent to its Ponto Verde iron ore project in Brazil.
The memorandum of understanding sets out the fundamentals for the negotiation regarding a possible agreement between the parties allowing SAFM to mine the ore body located on the eastern side of its tenement in the Sapecado Sul property, contiguous with the SAFM Ponto Verde mine. The expectation is that SAFM may be able to expand its mineral resource in the region of Sapecado Sul.
As SteelOrbis previously reported, in May this year SAFM was granted funding from the government of Brazilian state Minas Gerais for the expansion of the Ponto Verde iron ore project. The company expects to achieve a processing capacity of around 4 million mt of iron ore by June 2019.
