Business
Serabi Gold plc : Conditional acquisition of th...
Serabi Gold plc : Conditional acquisition of th....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Serabi Gold plc : Conditional acquisition of the Coringa gold project, Brazil For immediate release 14 November 2017Serabi Gold plc(\"Serabi\" or the \"Company\")Conditional acquisition of the Coringa gold project, Brazil Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to report that, on 13 November 2017, it signed a conditional acquisition agreement to acquire 100 per cent. of the issued share capital and inter-company debt of Chapleau Resources Ltd (\"Chapleau\"), a Canadian registered company wholly-owned by Anfield Gold Corp (\"Anfield\"), which holds the Coringa gold project (\"Coringa\") located in the Tapajos gold province in Para, Brazil. Coringa hosts a mineral resource estimate of 376,000 ounces of gold, including an Indicated Resource of 195,000 ounces of gold with an average grade of 8.4 grammes per tonne (\"g/t\"), which has been prepared in accordance with the reporting requirements of the standards of NI 43 101. Estimated mineral reserves included with the mineral resource are 160,000 ounces of gold with an average grade of 8.4g/t. Coringa is located some 70 kilometres to the south-east of the town of Novo Progresso which is approximately 130 kilometres by road to the south of Serabi's current mining operations at Palito. Serabi will acquire the entire issued share capital of Chapleau together with its outstanding inter-company debts owed to Anfield. Serabi will make an initial payment to Anfield on closing of the transaction (\"Closing\") of US$5 million in cash (\"Initial Consideration\"). A further US$5 million in cash is payable within three months of Closing and a final payment of US$12 million in cash will be due upon the earlier of either the first gold being produced or 24 months from the date of Closing (both payments together being the \"Deferred Consideration\"). The total proposed consideration for the acquisition amounts to US$22 million in aggregate. The Board of Serabi considers that the Initial Consideration and the first instalment of the Deferred Consideration can be settled from an extension of its existing loan facilities and current cash holdings (which, as at 30 September 2017, were US$9.75 million) and is evaluating its options for the longer term developm...