Hochschild Mining to acquire Amarillo Gold

Canadian-based, Brazil-focused producer Amarillo Gold has confirmed it has signed a plan of agreement to be acquired by Hochschild Mining in a share deal worth US$105.8 million.

Under the terms of the transaction, Hochschild will acquire all outstanding shares of Amarillo for cash consideration of $0.31 and one share of a new fellow Brazil-focused exploration company, Lavras Gold.

Lavras, which will own a portion of the Lavras do Sul project in the state of Rio Grande do Sul, will receive a revenue royalty on some of Amarillo’s exploration assets as well as $7.84 million in cash.

Hochschild said the deal is part of its push to add to and optimise its American developments.

A special committee of the board of Amarillo has already unanimously approved the transaction. The arrangement is still subject to the approval of the Amarillo shareholders; a special meeting on it is to be held early next year. 

Subject to the satisfaction of closing conditions, the companies expect the arrangement will close in the first quarter of 2022. 

Source: www.amarillogold.com