Canadian mining firm, Magellan Minerals Ltd, last week announced that it had successfully completed the acquisition of a 22.5% interest in certain mineral rights owned by Brasil Central Engenharia Ltda in the state of Mato Grosso. The deal will see the Canadian firm remit a consideration of US$2.5 million for the acquired mineral rights, found in the southern end of the state of Mato Grosso in Brazil.

Brasil Central Engenharia Ltda is a private firm in the country and the acquisition of its mineral rights is expected to bolster the Canadian firm’s business in the Brazil. Even so, the acquisition by Magellan will be an arm’s length transaction, said the company in a statement.

At the same time, another firm, ECI Exploration Mining Inc. as well reported that it had gone into an agreement for the acquisition of a 25.5% interest in the mineral rights from Brasil Central for a similar consideration, US$2.5 million. The two firms, Magellan and ECI Exploration Mining formed a joint venture last month for the exploration of gold in Mato Grosso, Brazil.

ECI is a private gold, silver and associated base metal exploration company with properties in Brazil, Mexico and Chile. Magellan and ECI have one director in common and each company owns common shares of the other company. The common director of both companies and an officer of Magellan own shares of ECI. Magellan is a TSE Venture Exchange listed exploration firm with a range of gold exploration assets in the Tapajos Province, northern Brazil.

The Canadian firm biases its operations on the Cuiu Cuiu and Coringa projects in which drilling is currently being undertaken.  Magellan Minerals Ltd. is a well financed Canadian-based junior exploration company focused on mineral exploration and development in the state of Para in northern Brazil. The Company has interests in a number of properties in the Tapajos region which has a historic gold production estimated at 20-30Moz of gold.

Magellan is searching for the source of this gold and is primarily focused on the Cuiú Cuiú and Coringa projects. Coringa was recently acquired in September 2009 as part of the acquisition of Chapleau Resources Ltd. The Company has to date identified 269,500 ounces of Measured and Indicated Resources, plus Inferred Resources of 98,224 ounces on the Coringa Project.