Business
Hochschild to Acquire Amarillo Gold
Hochschild to Acquire Amarillo Gold.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9587T\n Hochschild Mining PLC\n 30 November 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ________________________________________________________________________________________\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.\n \n \n \n \n \n For immediate release\n \n \n \n \n \n 30 November 2021 \n \n \n \n \n \n Hochschild Signs Definitive Agreement to Acquire Amarillo Gold\n \n \n \n \n \n Hochschild Mining PLC (\"Hochschild\" or the \"Company\") (LSE: HOC) (OTCQX: HCHDF) is pleased to announce that it has entered into a definitive agreement with Amarillo Gold Corporation (\"Amarillo\") (TSXV: AGC) (OTCQB: AGCBF) pursuant to which Hochschild has agreed to acquire all of the issued and outstanding shares of Amarillo (the \"Transaction\") at a price of C$0.40 per share in cash (the \"Cash Offer\"). Pursuant to the Transaction, Hochschild will acquire a 100% interest in Amarillo's flagship Posse gold project (\"Posse\") located in Goiás State, Brazil. \n \n \n \n \n \n In addition, shareholders of Amarillo will receive shares in a newly formed company, Lavras Gold Corp., which will hold a stake in the Lavras do Sul project, C$10 million of cash, and a 2.0% net smelter revenue royalty on certain exploration properties owned by Amarillo and located outside the current Posse resource and mine plan at Amarillo's Mara Rosa property. The net acquisition cost to Hochschild, including the Cash Offer, cash provided to Lavras Gold Corp. and Amarillo's net cash as at September 30, 2021, is estimated to be C$135 million.\n \n \n \n \n \n The Transaction constitutes a Class 1 Transaction under the UK Listing Rules due to the level of Posse's Proven and Probable Reserves relative to those of Hochschild. As such, the Transaction is subject to Hochschild shareholder approval as well as the approvals of Amarillo shareholders, the Canadian court, regulatory authorities and the satisfaction of certain other customary conditions. The Transaction has been unanimously recommended by the board of directors of Amarillo and has the full support of Amarillo's major shareholders, Baccarat Trade Investments Ltd. and Eric S...