Hochschild Mining PLC - Americas-focused precious metals exploration company - Subsidiary Amarillo Mineracao do Brasil Ltda enters into an option agreement with Cerrado Gold Inc, a gold miner operating in North and South America, to acquire a 100% interest in the latter's Monte Do Carmo gold project in central Brazil. The project comprises 21 mineral concessions covering 82,542 hectares, and hosts gold targets including the Serra Alta gold deposit, which holds an indicated resource of 1.0 million ounces and an inferred resource of 66,000 ounces of gold. In exchange, Amarillo Mineracao will advance Cerrado USD15 million by way of a 10% interest-bearing secured loan. It also has agreed to incur at least USD5 million in exploration expenditures during the 12.5 month-period ending March 2025.
Hochschild Chief Executive Officer Eduardo Landin says: "We are pleased to have secured the option to acquire Monte Do Carmo, an exciting project in the mining-friendly state of Tocantins. With the project holding significantly advanced permitting and compelling exploration upside potential, the transaction aligns with our strategy of adding high quality, pre-production assets where our construction, operational and brownfield exploration expertise provides us with a competitive advantage.
"With our Mara Rosa mine, also located in Brazil, in the state of Goias, recently achieving first production, we are looking forward to commencing a brownfield exploration programme at Monte Do Carmo which will allow us to assess the next steps for its development and its potential to generate sustainable value for Hochschild and local stakeholders."
Current stock price: 103.50 pence per share, up 3.5% in London on Tuesday morning
12-month change: up 57%
By Hugh Cameron, Alliance News reporter
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Hochschild (HOC)