Spokane-based Antilles Resources Ltd. transformed into Golden Palm Resources Ltd. Monday after buying a group of mining properties in Brazil.
Antilles, which owned some mining claims in Venezuela and elsewhere, acquired 155 mining leases mostly in Brazil’s Amazon Basin.
“It’s a new direction for us, and we needed it,” said J.C. Hite of Golden Palm. A group of investors approached Antilles with the plan about a year ago, he said. “We’re quite enthused.”
Of the mineral sites, two of them are ready for exploratory drilling, he said. They lie in a highly productive gold mining zone that has produced since the 16th Century, he said. Many of Golden Palm’s new sites lie close to existing mines, Hite said.
Recent changes in Brazil’s tax and mining laws have made foreign exploration far more attractive, he said. “Brazil has really been trying to attract foreign investment into the Amazonian Basin.”
The sites are owned by CCO Mineracao Ltda. and Chelsea Financial Corporation, which will combine their properties into a new company called Mingold Participacoes Ltda. Mingold’s holdings will be transferred to Golden Palm for 6 million shares of Golden Palm stock, under the agreement. Golden Palm will need to spend $3 million on the properties to have the bulk of the shares issued to Mingold shareholders.
Golden Palm will also issue special warrants for more common stock to raise money.
If initial drilling results show promise, Hite said Golden Palm will likely accelerate its spending on the properties.
“Brazil is going to be a very good deal for us,” he said.
More than $2.5 million have been spent on the properties that Golden Palm now owns, according to a press release. One promising mine, Jambreiro, lies near a mine that has produced 11 million ounces of gold.