“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.
