Chromite Deposit Acquisition IN Bahia, Brazil
DECEMBER 06, 2024 NEWS RELEASE TSXV: SDCU
SONORAN DESERT COPPER CORPORATION
CHROMITE DEPOSIT ACQUISITION IN BAHIA, BRAZIL
Vancouver, B.C.: Sonoran Desert Copper Corporation (“SDCU'' or the “Company”) (TSXV: SDCU) is
pleased to announce that the Company has signed a Letter of Intent (the “LOI”) dated December 3rd 2024,
to acquire a 100-per-cent interest in the Bahia Chromite Project (the “Bahia Chromite Project”). The Bahia
Chromite Project is in the northern region of the State of Bahia, Brazil, near the municipality of Piritiba,
which is 310km from Salvador via BR-324 and BR-052 to Mundo Novo and BR-421 to Piritiba (all paved).
The Bahia Chromite Project is being acquired from Beko Invest Ltd., based on the previous extensive
development work, completed under permit No. 1807 of 20.06.78, Official Gazette of 15.07.77 - MME-
DNPM 808.223/75 of SOGEMINE-EM, including a final research report approved by the Brazilian Mineral
Agency (ANM), and the filing of the Mining Application, which was assessed by the ANM. The Mining
Application submitted by SOGEMINE was rejected for lack of presentation of the Environmental License.
SOGEMINE did not advance to production due to the commercial strategies and internal strategies of the
parent companies which owned SOGEMINE.
The chrome market throughout Latin America, has been dominated by Ferbasa, which has focused on its
main production center in the region of Campo Formoso, where it has significant reserves to guarantee
the operation of its chrome alloy factory for many years. Ferbasa no longer pursues new deposits for the
enterprise. J.P Silva Rocha Estudos Geológicos Ltda, has verified the accuracy of the research procedures
carried out at the Bahia Chromite Project through visits and field inspections corresponding to the
information in the historical reports including the mapping, geophysical, geochemical and geological
interpretations, thus avoiding unnecessary reworks. In addition, a review was conducted regarding the
environmental aspects of the Bahia Chromite Project, which were determined to be favourable since
locally there is minimal vegetation cover and there will be minimal disturbance to the surface and based
on the final positive research report approved by the DNPM.
Fast-Track Development Plans
The Company is working to retain the services of a chromite expert consultant who formerly worked for
Ferbasa and has been historically involved in the Bahia Chromite Project. Historical exploration results
from Bahia Chromite Project yielded chromium values ranging from 19.3% to 50% Cr2O3. The plan is to
move the Bahia Chromite Project to a pilot plant production on a fast-track development basis with a
detailed plan in place for the Capital Budget in the next 90 days. Upon the initiation of trial mining, the
Company will utilize capital generated to advance the exploration work to validate the resource and to
better scale the throughput of a future Mine Permit based on a PEA report.
Transaction Details
The proposed terms and conditions of the Purchase Option, which will be the basis of the terms and
conditions to be set forth in a definitive agreement (the "Definitive Agreement") between the parties, are
as follows:
(a) In order to exercise the Purchase Option, SDCU will advance total cash payments to the Vendor
of the BC Project of US$1,300,000, as follows:
(i) SDCU will make a US$80,000 cash payment to the Vendor of the BC Project, upon
execution of the Definitive Agreement.
(ii) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within six
months of the mineral rights transfer at the ANM in Brazil.
(iii) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within
twelve months of the mineral rights transfer at the ANM in Brazil.
(iv) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within
eighteen months of the mineral rights transfer at the ANM in Brazil.
(v) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within
twenty-four months of the mineral rights transfer at the ANM in Brazil.
(b) The Parties agree that a two percent Net Smelter Royalty will granted in favour of the Vendor on
all production of all materials from the BC Project.
Closing Conditions.
The execution of the Definitive Agreements will be subject to the following conditions:
(a) Each Party obtaining all necessary and appropriate governmental, regulatory, contractual, board
of director, shareholder, member and other third-party licenses, permits, approvals and/or consents
which are required to execute the Definitive Agreements.
(b) SDCU obtaining TSX Venture Exchange approvals for the transaction.
(c) Such other necessary and appropriate conditions as the parties shall mutually agree during their
negotiations of the Definitive Agreements.
Qualified Person Statement
The technical contents of this release were approved by Andre L. Costa, P.Geo., FAIG, a Qualified Person
as defined by National Instrument 43-101 and an independent consultant to the Company.
References
(1) Definitive Feasibility Study of SOGEMINE Empressa de Mineracao Ltda, dated August 12, 1983, by
Arther W. Ruff. Permit No. 1807 of 20.06.78, Official Gazette of 15.07.77 - MME-DNPM 808.223/75.
(2) Final report filled at the ANM - Brazilian Mining Agency. Claim # 870.024/2024. Exploration permit
#60 published on 02/10/2021 by J. P Silva Rocha Estudos Geológicos Ltd.
ABOUT SONORAN DESERT COPPER CORPORATION
Sonoran Desert Copper Corporation is focused on securing, developing and monetizing materials assets
and technologies to build shareholder value.
On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION
"Brian Leeners"
Brian Leeners, CEO & Director
[email protected] / +1 604-862-4184 (WhatsApp)
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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