Jaguar Signs Accelerated Earn-In Agreement to Divest Gurupi Project; Plans to Repay Higher-Cost Brazilian Debt Facility and Improve Working Capital
NEWS RELEASE
September 18, 2017 TSX:JAG
FOR IMMEDIATE RELEASE
Jaguar Signs Accelerated Earn-In Agreement to Divest Gurupi Project;
Plans to Repay Higher-Cost Brazilian Debt Facility and Improve Working Capital
Toronto, Canada, September 18, 2017 — Jaguar Mini ng Inc. ("Jaguar" or the "Company") (TSX:JAG) is
pleased to announce that it has ent ered into an accelerated earn-in agreement (the “Agreement”) with Avanco
Resources Limited (“Avanco”) (ASX: AVB), pursuant to which Avanco w ill earn up to a 100% ownership
interest in the Gurupi Project (“Gurupi” or the “Project”) after meeting some short-term milestones and making
a series of payments to Jaguar. The Project is loca ted in the state of Maran hão, Brazil, and includes the
Cipoeiro and Chega Tudo deposits found in a mainly unex plored 72-kilometre trend. Jaguar, through a wholly-
owned subsidiary, holds mineral concessions totaling 140,332 hectares. The last feasibility study on the
Project was prepared on January 31, 2011, by TechnoMine Services LLC, wh ich is filed under the Company’s
profile on SEDAR (www.sedar.com).
Main Terms of the Accelerated Earn-in Agreement
Upon the satisfactory completion of certain closing conditions, the Agreement provides Avanco with the right to
earn 100% of Jaguar’s interest in the Project by paying to Jaguar an aggregate ca sh payment of US$4 million
in two instalments of US$2 million eac h. Upon achieving clear title and access to the Project, Jaguar will
receive in aggregate an addi tional US$5 million of cash payments, rece ived in a series of 10 instalments of
US$500,000 per month. The majority of the Avanco US$9 million in pay ments are expected to be paid to
Jaguar in 2017 and 2018 fiscal years.
Within 24 months of the initial US$4 million payment, Avanco will arran ge to have publis hed an Australian
Joint Ore Reserve Committee (JORC) code compliant te chnical report completed regarding the Project with
mineral reserves in excess of 500,000 ounc es of gold. Any delay in this mile stone will result in a project delay
fee payable to Jaguar of US$250,000 per six months of delayed period. With in 60 months of the initial US$4
million payment, Avanco will aim to commission the Gurupi mine and plant. Any delay in this commissioning
milestone will result in a separate project delay fee payable to Jaguar of US$250,000 per six months of
delayed period.
Consistent with the original earn-in agreement, Jaguar will retain a life of mine Net Smelter Return (“NSR”)
royalty (“Royalty”) from production at Gurupi. The Royalty will be 1% NSR on the first 500, 000 ounces of gold
or gold ounce equivalents sold; 2% NSR on sales from 500,001 to 1,500,000 ounces of gold or gold ounce
equivalents; and 1% NSR on gold sales exceeding 1,500,000 ounces of gold or gold ounce equivalents.
The Agreement will provide Avanco with control over t he Project earlier than planned in the previous earn-in
agreement, empowering Avanco to move the asset into production in a timely and expedited manner. Cash
proceeds received by Jaguar from th is accelerated Agreement will be us ed to repay the Company’s higher-
cost Brazilian debt facility, improve working capital, and reduce its financing repayment obligations in 2017 and
2018.
Rodney Lamond, President and Chief Executive Officer of Jaguar commented, “We are pleased to announce
an accelerated earn-in agreement with Avanco that should result in the development and commissioning of a
mine at the Gurupi Project earlier than anticipated. This Agreement provides Jaguar with accelerated cash
payments while retaining the significant exploration upsi de potential this property possesses through the life of
mine NSR Royalty. The cash proc eeds from Avanco will be applied immediately towards reducing the
Company’s higher-cost Brazilian debt facility, improving working capital, and str engthening our balance sheet.
We are pleased with the recent improvements in th e Company’s mine operations which continue to generate
operating cash flow. Today's announcem ent provides additional confidence that the Company is expected to
maintain a positive working capital position going forward.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in
Brazil with three gold mining complexes, and a large land package with significant exploration potential from
mineral claims covering an area of approximately 192,000 hectares. The Company’s principal operating
assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais, and include
the Turmalina Gold Mine Complex and Caeté Gold Mine Complex, which combined produce approximately
95,000 ounces of gold annually. The Company also owns the Paciência Gold Mine Complex, which has been
on care and maintenance since 2012. Additional info rmation is available on the Company's website at
www.jaguarmining.com.
About Avanco Resources Ltd.
Avanco is a Brazilian focused mining exploration an d development company, targeting exploration and near-
term production from copper and gold projects. Av anco’s Board of Director s and Management team have
extensive global resource i ndustry experience, particularly in No rthern Brazil where they have recently
commissioned the Antas copper-gold mine on-schedule and under budget. Avanco has offices in Perth,
Australia; Rio de Janeiro, Brazil; and Parauapebas, Brazil.
For further information please contact:
Forward-Looking Statements
Certain statements in this press release constitute "forward -looking information” within the meaning of applicable Canadian
securities legislation. Forward-looking in formation contained in forward-looking stat ements can be identified by the use of wor ds
such as "are expected", "is forecast", "is targeted", "approximat ely", “plans”, “anticipates” "projects", "anticipates", "conti nue",
"estimate", "believe" or variations of su ch words and phrases or statements that cert ain actions, events or results "may", "cou ld",
"would", "might", or "will" be taken, occur or be achieved. This press release contains forward-looking information regarding ( 1)
the expectations regarding whether a transaction will be consummated, including whether conditions to the consummation of the
transactions will be satisfied, or the ti ming for completing the transaction, (2) expec tations for the effects of the transacti on or the
ability of the Company to successfully achieve business objectiv es, including the effects of un expected costs, liabilities or delays,
and if the transaction is completed, the abi lity of the Company to allocate the net proceeds as stated above, and (3) expectati ons
for other economic, business, and/or compet itive factors. Forward-looking information involves a number of known and unknown
risks and uncertainties, which, if incorrect, may cause actual resu lts to differ materially from those anticipated by the Compa ny,
including, without limit ation, the risks that the transacti on as described in the Agreement may not be completed and the partie s
may be unable to realize on the anticipated benefits of the transaction. Accordingl y, readers should not place undue reliance o n
forward-looking information.
For additional information with respect to these and other factors and assumpti ons underlying the forward-looking information
made in this press release, see the Company’s most recent annual information form and management's discussion and analysis,
as well as other public disclosure documents that can be access ed under the issuer profile of "Jaguar Mining Inc." on SEDAR at
www.sedar.com. The forward-looking information set forth herein reflects the Company’s reasonable expectations as at the date
of this press release and is subject to change after such date. The Company disclaims any int ention or obligation to update or
revise any forward-looking information, whether as a result of new information, futu re events or otherwise, other than as requi red
by law. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
Rodney Lamond
President & Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
416-847-1854