Novo Mundo GU Extended with Funded Mining Agreement Signed

Funded Mining Program Targets Novo Mundo Gold

Resouro Strategic Metals (ASX:RAU) has taken a significant step to unlock value from its non-core Novo Mundo gold project in Mato Grosso, Brazil, by signing a binding agreement with Future Mining Ltda. and Buri Gold Mineração Ltda. (BGM). Under the deal, Future Mining and BGM will bankroll and manage a mining, transport, and processing program, allowing Resouro to preserve capital for its flagship Tiros Titanium and Rare Earth Elements Project.

The agreement covers operations under the existing Trial Mining License (Guia de Utilização, or Novo Mundo GU), which the Brazilian Department of Mines (ANM) recently extended for three years. This extension permits mining up to 4,000 tonnes per month, providing a regulatory runway for the planned program.

Operational and Financial Structure of the Agreement

Future Mining and BGM will provide all capital expenditure, operating costs, contractors, and technical expertise required for the program, subject to an agreed budget and regulatory approvals. The mined gold-bearing material will be trucked to BGM’s nearby processing plant, which has experience treating similar ore types.

Revenue sharing is structured to initially allocate about 70% of net gold sales revenue to Future Mining/BGM until they recover their initial capital and operating expenditures. Thereafter, the split is expected to move to an even 50/50 arrangement. This arrangement is designed to deliver potential non-dilutive cash flow to Resouro while maintaining ownership and control of the Novo Mundo mineral rights.

Risks and Uncertainties Without a Feasibility Study

Crucially, the program will proceed without a feasibility study or declared Mineral Reserves or Ore Reserves. Resouro cautions that this elevates technical and economic risk, with uncertainties around grade continuity, metallurgical recoveries, operating costs, and regulatory compliance. The company emphasises that mining decisions will be made without the usual economic and technical viability studies, increasing the chance that the project might not generate positive cash flow or could be suspended.

Environmental licenses, safety requirements, and other regulatory approvals remain conditions precedent before operations can commence. The parties will jointly oversee budgets, production plans, assay protocols, and environmental controls through a joint operating committee.

Novo Mundo’s Geological Context and Historical Results

Novo Mundo lies within the prolific Alta Floresta Gold Province, an area with a rich history of gold rush activity. The project consists of three contiguous licences covering about 16,700 hectares, accessible by paved roads approximately 740 km from Cuiabá, the state capital.

Historical drilling highlights include intervals with gold grades up to 19.93 g/t over short widths and broader intercepts averaging around 3 to 5 g/t. These results, previously disclosed by Resouro, reflect promising mineralisation along the Luisão–Dionísio–Modesto trend, with two parallel high-grade shoots identified over a combined strike length exceeding 4.5 kilometres.

Strategic Focus Remains on Tiros Project

While Novo Mundo offers a potential near-term cash flow opportunity, Resouro remains firmly focused on advancing its Tiros Titanium and Rare Earth Elements Project in Minas Gerais. The company’s CEO Christopher Eager stressed that the agreement allows Resouro to unlock value from Novo Mundo without diverting capital from Tiros, which holds a substantial mineral resource estimate including 165 million tonnes of titanium dioxide and 5.5 million tonnes of rare earth oxides within a measured and indicated resource of 1.4 billion tonnes.

This strategic capital allocation aligns with Resouro’s recent leadership changes and operational progress, including metallurgical testwork and economic assessments at Tiros. The Novo Mundo deal offers a way to monetise a non-core asset while maintaining control and flexibility over its mineral rights.