Manganese focused Maxtech Ventures Inc (CNSX:MVT) is set to get busy on the ground in Brazil, as it may form a joint venture to explore 40,000 hectares in the state of Para.
The potential partner is Andorra Participacoes and the firm is already organising a site visit with Andorra and MLB Mining Brazil, Maxtech's in-country manager.
READ: Maxtech’s high-grade pure-play manganese offering is one of a kind in a potentially very lucrative market
The areas of interest lie in the Teles Pires River basin in the southwest portion of the state and the claims have geological structures in three main directions, the firm said.
"Maxtech's strategy for the first quarter is to joint venture with companies in the Brazil who have already located high-grade manganese areas of interest," said Peter Wilson, chief executive at Maxtech.
"Now that the rainy season in the region is over, our operations will ramp up quickly, and research and technical site visits will increase," he added.
The LOI (letter of intent) is effective for 120 days, closing no later than June 23 this year.
Andorra Participacoes e Empredimentos and Maxtech are in discussions about a joint venture, which will hinge on successful due diligence, including licensing verifications and initial sample assay results.
Mining accounts for 14% of the gross domestic product (GDP) of Para, mainly from the extraction of iron, bauxite, manganese, limestone, tin and gold.
Max tech is a pure play manganese near-term producer, which Wilson says has an ever-increasing portfolio of assets in Brazil in the state of Mato Grosso.
There are also potential assets the company is researching in Zambia and Morocco.
The first stop on this global path to growth is Brazil, where Maxtech projects are at their most advanced.
Here Maxtech has four claims that add up to almost 40,000 hectares in total, and it has a strategic partnership too, in the shape of Maringa Ferro, a locally established producer of manganese and manganese silica that operates five furnaces with a capacity of 80,000 tonnes per year.