(Sharecast News) - Hochschild Mining said it had signed a deal with Cerrado Gold giving it the option to buy a 100% interest in the latter's Monte Do Carmo project located in the state of Tocantins, Brazil.
The project, made up of 21 mineral concessions, hosts multiple identified gold targets, including the principal Serra Alta gold deposit, which hosts a measured and indicated resource of 1,012koz gold and inferred resource of 66koz gold, Hochschild said on Tuesday.
It has agreed to advance to Cerrado an amount equal to $15m via a 10% interest-bearing secured loan and committed to incur a minimum of $5m in exploration expenditures at the project during a 12.5-month period ending on March 19, 2025.
At any time during the option period, Hochschild's subsidiary Amarillo Mineração can elect to buy the project by repayment of the loan, and by making further cash payments to Cerrado up to $45m in multiple installments over the next three years.
Reporting by Frank Prenesti for Sharecast.com
Hochschild (HOC)