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Option to acquire Monte Do Carmo project, Brazil
Option to acquire Monte Do Carmo project, Brazil.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n\n \n \n \n \n \n_____________________________________________________________________________________\n \n5 March 2024\n \nOption to acquire Monte Do Carmo project, Brazil\n \nHochschild Mining PLC (\"Hochschild\" or the \"Company\") (LSE: HOC) (OTCQX: HCHDF) is pleased to announce that its wholly-owned subsidiary, Amarillo Mineração do Brasil Ltda. (\"Amarillo Mineração\") has entered into an option agreement and certain ancillary agreements (the \"Agreements\") with Cerrado Gold Inc. (\"Cerrado\") (TSXV: CERT) (OTCPK: CRDO.F), pursuant to which Cerrado has granted Amarillo Mineração the option (the \"Option\") to acquire a 100% interest in Cerrado's Monte Do Carmo Project (the \"Project\") located in the mining-friendly state of Tocantins, Brazil.\n \nThe Project, comprising 21 mineral concessions encompassing 82,542 hectares, hosts multiple identified gold targets along a 30km mineralised trend, including the principal Serra Alta gold deposit, which hosts a Measured and Indicated resource of 1,012koz gold and Inferred resource of 66koz gold and was the subject of a Feasibility Study dated 31 October 2023. The Project benefits from significant existing site infrastructure including year-round access via a paved highway and close proximity to the Isamu Ikeda hydropower plant. Permitting is substantially advanced, with the Environmental Impact Assessment approved and the Preliminary Licence granted by the Tocantins state environmental agency in May 2023.\n \nIn consideration for entering into the Option, Amarillo Mineração has agreed to advance to Cerrado an amount equal to $15 million by way of 10% interest-bearing secured loan (the \"Signing Loan\") and has committed to incur a minimum of $5 million in exploration expenditures at the Project during a 12.5-month period ending on 19 March 2025 (the \"Option Period\").\n \nAt any time during the Option Period, Amarillo Mineração may, at its sole discretion, elect to exercise the Option to acquire a 100% interest in the Project by deemed repayment of the Signing Loan, and by making further cash payments to Cerrado totaling $45 million in the aggregate, in multiple installments over the next three years, as further described below (together with the Option, t...