- Gold mining company Hochschild Mining had struck a deal to acquire Amarillo Gold for C$135 million.

The deal also included Amarillo's flagship Posse gold project located in Goias State, Brazil.

Under the terms of the deal, shareholders of Amarillo would also receive shares in a newly formed company, Lavras Gold Corp., which would 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 of C$0.40 per share, cash provided to Lavras Gold Corp. and Amarillo's net cash as at September 30, 2021, was estimated to be C$135 million.

'The acquisition of Amarillo enhances the Company's project pipeline and is the result of a long-term Company review process of a wide range of growth opportunities. Posse is an attractive low-cost project with relatively near-term production and strong exploration upside potential,' the company said.

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