Pedra Branca Platinum/Palladium Royalty Project – Brazil
In January, 2019 Solitario announced it had sold two royalties and an option to purchase a third royalty to SilverStream SEZC (“SilverStream”), a private Cayman Island royalty and streaming company. Solitario will receive CDN $250,000 in cash and CDN $350,000 in a convertible note as payment for the royalties and option. The royalties cover the 125,000-acre polymetallic Pedra Branca palladium, platinum, gold, nickel, cobalt and chrome project in Brazil and Solitario’s 3,880-acre Mexico royalty portfolio. The purchase option covers Solitario’s 16,500-acre Montana royalty portfolio.
The centerpiece royalty is the 1% NSR royalty on the Pedra Branca project owned by Jangada Mines, a London-based company that is actively advancing the project. The property has a JORC compliant resource. The Montana royalties cover high-potential geologic terrain for copper-gold mineralization and the Mexico royalties include prospective areas for precious and base metal mineralization in historic mining districts of Mexico. The CDN $350,000 convertible note has a one-year term with a 5% per annum simple interest rate. The note is convertible into SilverStream stock should SilverStream complete an IPO before the end of the one-year term. For more information see the 01/22/2019 Press Release.
During 2015 we converted our operating interest in the Pedra Branca project to a 1% NSR interest. The Pedra Branca platinum-palladium project consisted of 46 exploration concessions totaling approximately 51,500 hectares in the Ceará State, Brazil. The property is now owned by Jangada Mines, which controls all activities related to the Pedra Branca project.