Meteoric fails to complete sale of Brazilian gold project

Australian junior miner Meteoric could not close the sale of its Juruena gold project in Brazil’s Mato Grosso state. 

In June 2022, it announced an accord to sell to Keystone Resources, a subsidiary of Alchemist Investments, for around US$20mn. As part of the accord, Meteoric received initial non-refundable payment of US$2.5mn, with the rest due March 31.

"The company received notice from Keystone advising that it was unable to make payment on the due date. Furthermore, Keystone did not provide any commitment as to when it would be able to pay the outstanding US$17.5mn," Meteoric said in a statement.

The failure obligated Meteoric to hold a private placement of shares to raise Aus$25mn (US$16.9mn) to conclude the acquisition of the Caldeira rare earth project in Minas Gerais state, acquired recently from local firm Togni.

"This capital raising was not otherwise contemplated at this time, and is a direct result of the breach by Keystone under the term sheet," Meteoric said.