Hochschild Mining has announced that its subsidiary, Amarillo Mineracao do Brasil, has exercised its option to purchase Cerrado Gold’s Monte Do Carmo Project in Brazil for a total of up to $60 million, following an initial announcement in March.
The acquisition involves an immediate payment of $30 million, with additional payments of $15 million contingent on reaching specific milestones. As part of the deal, Hochschild advanced $15 million to Cerrado in March through a secured loan bearing 10% interest.
The transaction is expected to close on November 5, following approval from Cerrado shareholders on June 27. The Monte Do Carmo Project is situated in the Tocantins state of Brazil, furthering Hochschild’s focus on precious metals in South America.