Alvo Minerals (ASX:ALV) said the nonbinding letter of intent with Pan American Silver to acquire 100% of the Lavra Velha gold project in Brazil was terminated, according to a Friday ASX filing.

This came after the firm was not able to complete due diligence to its satisfaction within the 45-day exclusivity period, and an extension was not agreed upon with the vendor.

The firm said it will consider other assets in Brazil.

There are no break fees payable from either party on the termination.

Its board also decided not to proceed with an earlier announced entitlement offer, and all application funds received under the offer will be returned to applicants in full.

It launched a pro rata accelerated non-renounceable entitlement offer of one new ordinary share in the capital of the firm for every 1.5 existing Alvo shares at AU$0.0002 per new share, in order to raise around AU$1.6 million.