BC Iron Limited
(ASX:BCI) and Cleveland Mining Co Limited
(ASX:CDG) will take a joint majority stake in three projects in Brazil.
The miners have signed two agreements to earn the rights to acquire up to 80 per cent of three separate iron ore exploration projects in Brazil.
BC and Cleveland have investigated more than 50 South American iron ore projects since they formed an alliance nine months ago.
The proposed acquisitions would be their debut iron ore projects in Brazil.
Outgoing BC Iron managing director Mike Young says the deal structure is in line with the companies' approach to projects in Brazil, including relatively small upfront costs and a tight, commercial relationship with the vendors.
BC Iron posted a net profit of $7.74 million for the first half of the current financial year.
