LONDON – Ajax (AQSE: AJAX), a UK-listed natural resources investment company, said on Thursday it has signed heads of terms to acquire Brazil’s Pereira Velho gold project from Appian Capital Advisory, one of the world’s largest mining-focused private equity groups.
The deal will see Ajax acquire 100% of Pereira Velho Exploração S.A. (PVESA), which owns the project in Alagoas state, for an upfront payment of $600,000 in cash and shares, with a further $1.5 million in shares contingent on publication of a JORC-compliant resource of at least 350,000 ounces.
Appian, which manages about $5 billion in mining assets, will become a significant shareholder in Ajax through its subscription for new shares. The agreement also includes a 2.5% net smelter return royalty, payable only if gold prices average above $2,500 per ounce for two consecutive quarters, with Ajax retaining a buyback option.
Ajax said the project has an in-house resource estimate of 110,000 ounces and has seen $5 million of historic exploration spending, though only 10% of the area has been drilled. The company plans a two-phase work programme including validation drilling and a 3,000-metre diamond drilling campaign to deliver a maiden JORC-compliant resource.
The project lies about 20 km from Appian’s former Serrote copper-gold mine, acquired for $30 million in 2018 and sold for $420 million earlier this year, underscoring the region’s geological potential.
Completion of the transaction is expected by the end of January 2026, subject to signing of a definitive agreement.