Ardent Mines Ltd Friday announced it had signed a Memorandum of Understanding with the owners of Brazil’s Rio Sao Pedro Mineracao Ltd over property owned by the Brazilian firm. The property has gold mining potential. Rio Sao Pedro Mineracao Ltd controls land suitable for prospective gold mining situated about 8 miles from Paracatu, and around 180 miles from Brasilia, for which Ardent expects to acquire 100 percent of the firm via share exchange.

Ardent Chief Executive Officer Leonardo Riera said the property, known as Fazenda Lavras, is in close proximity to Kinross Gold in Paracatu, the largest producing mine in Brazil. Preliminary evaluations indicate reserves of approximately 5.7 million ounces of gold on the property. In addition to this property, Rio Sao Pedro Mineracao Ltd owns the mineral rights on more than 1,000 acres of adjacent properties. In a press release statement announcing the deal, Riera said the estimation was made on the basis of analysis to a depth of just 40 meters when compared to the neighboring Kinross operation that is continuing to produce at 80 meters.

The geologist’s reports indicate that the two properties have similar geological formations, so Ardent Mines is upbeat about the potential of this acquisition, named Vale du Ouro (Gold Valley), said Mr. Riera. Under the terms of the MOU agreement, Ardent Mines expects to acquire 100% of the shares of Rio Sao Pedro Mineracao Ltd inclusive of the property and all its mineral rights - by means of a share exchange.

In consideration for the acquisition of Rio Sao Pedro Mineracao, Ardent will issue 14,957,650 shares of Ardent Mines common stock, representing 50 percent of issued and outstanding equity shares of Ardent as of the date of their issuance to the sellers of the Brazilian firm. The closing of the transaction is subject to customary closing conditions, including the completion of a thorough geology survey, completion of audited financial statements, acquisition of all necessary government approvals to commence gold mining on the property, completion of due diligence, and the execution of detailed final agreements.

Ardent is positioning itself to develop mining operations throughout the world.  Ardent is an exploration stage company, and is presently researching and negotiating acquisitions, acquiring financing and assembling staff. Currently, Rio Sao Pedro Mineracao is in the process of applying for all environmental permits and gold production licenses in Brazil.  

22 Oct 2010.