Brazilian base metals group Paranapanema said on Monday it signed a deal to sell all of its controlling stake in the Taboca mining company to Serra da Madeira for 850 million reais ($470 million).

    The mine, which Taboca operates 250 kilometers from the capital city of Manaus in the state of Amazonas, produces tin, niobium, and iron ore, among other metals. The price of the deal is subject to adjustments under due diligence.

    Paranapanema holds virtually all the outstanding shares of Taboca, which in turn holds a controlling stake in the local Companhia na Mamore Mineracao e Metalurgia that will now also fall under control of Serra da Madeira, indirectly.

    Serra da Madeira is indirectly controlled by Minsur, a leading producer of tin in Peru.

    Brazil's Vale, the world's largest iron ore company, said in July it was interested in buying Paranapanema's copper smelting unit, Caraiba Metais and its fertilizer unit, Cibrafertil, but no formal offer has been published.

    Paranapanema shares were up 5.11 percent at 5.35 reais in early trade on the Sao Paulo Stock Exchange.