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Precious metals producer Hochschild Mining PLC announced Wednesday its decision to acquire full ownership of a Brazilian gold project from Cerrado Gold Inc. for $60 million. Linklaters, Stikeman Elliott, and Bichara Advogados are advising on the transaction.

Hochschild Secures Control of Monte Do Carmo Project in Brazil :

London-listed Hochschild Mining PLC, through its Brazilian subsidiary, Amarillo Mineração do Brasil Ltd., has exercised a contractual put option from a March agreement to acquire the Monte Do Carmo open-pit gold project from Toronto-listed Cerrado Gold Inc. The acquisition will involve a total investment of $60 million, reinforcing Hochschild’s commitment to expanding its South American portfolio.

Legal counsel on the transaction includes Linklaters LLP, representing Hochschild, with Stikeman Elliott LLP overseeing Canadian aspects of the deal, and Brazilian firm Bichara Advogados managing local legalities.

CEO Lauds Monte Do Carmo’s Strategic Importance:

Hochschild’s CEO, Eduardo Landin, celebrated the addition of the Monte Do Carmo project to the company’s portfolio, which includes the successful Mara Rosa gold mine in Goiás state, acquired in 2022.

“After the successful commissioning of [the Mara Rosa mine], I am delighted to integrate Monte Do Carmo into our project pipeline,” Landin said. The CEO highlighted the results of exploration and twin drilling, which he says affirm the project’s potential and support Hochschild's ongoing commitment to gold exploration and production in Brazil.

Hochschild to buy Gold Project In Brazil : Project Background and Transaction Details

Spanning 82,500 hectares and encompassing part of the Serra Alta deposit, the Monte Do Carmo project is in an advanced pre-development stage. Permits and licenses are “substantially advanced,” although the project, valued at $49 million as of June 30, recorded a $167,000 loss in the first half of the year.

The acquisition will unfold in stages, with Hochschild paying $15 million initially and another $30 million before the deal closes, anticipated on Nov. 5. A final $15 million payment is contingent upon meeting financial milestones.

Shareholder and Regulatory Approvals

While Cerrado Gold shareholders approved the transaction in June, Hochschild’s board approval was not required. The final closing, pending approval from the Toronto Stock Exchange, marks a significant step in Hochschild’s strategy to strengthen its role as a prominent precious metals producer across the Americas.

Hochschild Expands South American Presence

Hochschild’s latest acquisition underscores its ambition to expand its presence in Brazil, Argentina, and Peru. The London-listed company, predominantly owned by Peruvian businessman Eduardo Hochschild, has established itself as a key player in the mining and processing of silver and gold throughout South America.