TORONTO, April 01, 2022 (GLOBE NEWSWIRE) — Amarillo Gold Corporation (TSX: AGC) (“Amarillo”) and Lavras Gold Corp. (“Lavras Gold” or the “Company”) have completed the plan of arrangement (the “Arrangement”) transaction involving the acquisition of Amarillo by a subsidiary of Hochschild Mining PLC (“Hochschild”) and spinout of Lavras Gold. Pursuant to the Arrangement, each share of Amarillo has been exchanged for cash consideration of C$0.40 and one common share (each, a “Lavras Gold Share”) of Lavras Gold, a new Brazil-focused exploration company, based in Toronto, Ontario.
Amarillo is now a wholly owned subsidiary of Hochschild. It is anticipated that Amarillo will be de-listed from the TSX Venture Exchange (the “TSXV) and will apply to cease to be a reporting issuer.
Lavras Gold Corp.
Concurrent with the closing of the Arrangement, Lavras Gold was launched as a standalone well-capitalized mineral exploration company owned entirely by former Amarillo shareholders. Lavras Gold holds all the Lavras do Sul gold project assets owned by Amarillo prior to closing of the Arrangement.
Conditional listing approval for the Lavras Gold Shares has been received from the TSXV. Upon satisfaction of the listing conditions of the TSXV, Lavras Gold Shares are expected to trade on the TSXV under the symbol “LGC”. Trading of the Lavras Gold Shares on the TSXV is anticipated to occur in approximately four to five trading days from today.
Capitalized with approximately C$9.4 million cash
Holds all of Amarillo’s former assets and rights with respect the advanced exploration stage Lavras do Sul gold project
Recent estimated measured, indicated and inferred mineral resources for the Butiá Prospect, forming part of the Lavras do Sul gold project, together with other identified prospective exploration targets
Close proximity to existing infrastructure, located in mining-friendly state
Holds a 2.0% net smelter revenue royalty on certain exploration properties outside Amarillo’s current Posse resource at its Mara Rosa Project
Lavras Gold is a junior exploration company engaged in the exploration and development of the Lavras do Sul gold project located in the state of Rio Grande do Sul, Brazil. The Lavras do Sul gold project is an advanced exploration stage property that is approximately 190 square km in size and comprised of more than 22 prospects centered on historic gold workings, including the Butiá prospect.
Lavras Gold’s vision is to be a leading independent exploration and production company in Brazil, maximizing shareholder value by bringing its disciplined exploration approach to the Lavras do Sul gold project and other potential opportunities.
It has the near-term objective of carrying out continuing exploration activities at the Lavras do Sul gold project, including the work program recommended in the technical report titled “NI 43-101 Technical Report Mineral Resource for Butiá Gold Prospect,” dated March 21, 2022, which is expected to be available under Lavras Gold’s profile on SEDAR at www.sedar.com.
Further details regarding Lavras Gold are contained in Lavras Gold’s TSXV Form 2B Listing Application, which is expected to be available under Lavras Gold’s profile on SEDAR at www.sedar.com.
Lavras Gold Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.
Forward-looking statements and Cautionary Language
Certain information provided in this news release constitutes forward‐ looking statements. Specifically, this news release contains forward‐looking statements relating to the timing of the listing of the Lavras Gold Shares on the TSXV, exploration and development prospects of the Lavras do Sul gold project and Lavras Gold’s planned operational activities. The forward‐looking statements are based on certain key expectations and assumptions made by Lavras Gold, including expectations and assumptions concerning the satisfaction of the listing requirements of the TSXV, the availability of capital, risks related to Lavras Gold’s limited business history; risks related to the nature of mineral exploration and development; discrepancies between actual and estimated mineral reserves and resources; risks caused by factors beyond Lavras Gold’s control, such as gold market price volatility, recovery rates of minerals from mined ore, general economic and business conditions, including as influenced by the war in Ukraine and the COVID-19 pandemic; risks related to competition in the mineral industry; risks related to regulatory…