Amarillo Gold Corporation and Lavras Gold Corp. finalize arrangement and launch
TORONTO, April 01, 2022 (GLOBE NEWSWIRE) — Amarillo Gold Corporation (TSX:AGC) (“Amarillo“) and Lavras Gold Corp. (“golden laurel“or the”Company”) have completed the plan of arrangement (the “Arrangement”) transaction relating to the acquisition of Amarillo by a subsidiary of Hochschild Mining PLC (“Hochschild”) and spin-off of Lavras Gold. Pursuant to the arrangement, each Amarillo share was exchanged for cash consideration of C$0.40 and one common share (each, aLavras gold share”) of Lavras Gold, a new Brazil-focused exploration company based in Toronto, Ontario.
Amarillo is now a 100% subsidiary of Hochschild. It is expected that Amarillo will be delisted from the TSX Venture Exchange (the “TSXV) and will request to cease to be a reporting issuer.
Lavras Gold Corp.
Concurrent with the closing of the Arrangement, Lavras Gold was launched as a well-capitalized stand-alone mineral exploration company wholly owned by former Amarillo shareholders. Lavras Gold owns all of the assets of the Lavras do Sul Gold Project held by Amarillo prior to the closing of the Arrangement.
Conditional approval to list the shares of Lavras Gold has been received from the TSXV. Upon satisfaction of the TSXV listing requirements, Lavras Gold Shares are expected to trade on the TSXV under the symbol “LGC”. Trading in shares of Lavras Gold on the TSXV is expected to occur approximately four to five trading days from today.
- Capitalized with approximately C$9.4 million in cash
- Holds all former assets and rights of Amarillo regarding the Lavras do Sul gold project in the advanced exploration phase
- Estimated recent measured, indicated and inferred mineral resources for the Butiá prospect, part of the Lavras do Sul gold project, as well as other identified potential exploration targets
- Close to existing infrastructure, located in favorable condition for mining
- Holds a 2.0% net smelter return royalty on certain exploration properties outside of Amarillo’s current Posse resources on 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 with an area of approximately 190 km2 and composed of more than 22 prospects centered on historical 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.
Its short-term objective is to continue exploration activities on the Lavras do Sul gold project, including the work program recommended in the technical report entitled “NI 43-101 Technical Report Mineral Resource for Butia 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 Form 2B listing application on the TSXV, which should 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 press release.
Forward-Looking and Cautionary Statements
Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements regarding the timing of the listing of Lavras Gold’s shares on the TSXV, the prospects for exploration and development of the Lavras do Sul Gold Project and Lavras Gold’s anticipated operating activities. Forward-looking statements are based on certain key expectations and assumptions made by Lavras Gold, including expectations and assumptions regarding meeting TSXV listing requirements, availability of capital, risks related to Lavras’ limited trading history Gold; risks relating to the nature of mineral exploration and development; differences between actual and estimated mineral reserves and resources; risks caused by factors beyond Lavras Gold’s control, such as volatility in gold market prices, mineral recovery rates from mined ore, general economic and business conditions, including those influenced by the war in Ukraine and the COVID-19 pandemic; risks relating to competition in the mineral industry; risks related to regulatory requirements, including environmental laws and regulations and liabilities; risks relating to obtaining permits and licenses and future changes in environmental laws and regulations; risks relating to Lavras Gold’s inability to obtain insurance for certain potential losses; risk related to competition in the gold mining industry; environmental risks and hazards, including unknown environmental risks related to past activities; risks relating to political developments and changes in policy; land reclamation cost risks; risks relating to Lavras Gold’s title to mineral properties; risks related to dependence on key personnel; risks related to changes in laws and other risks. Readers are cautioned that assumptions used in preparing this information, although believed to be reasonable at the time of preparation, may prove to be incorrect.
These forward-looking statements are based on certain key expectations and assumptions. Although Lavras Gold believes that the expectations and assumptions on which the forward-looking statements are based are reasonable at the time of preparation, undue reliance should not be placed on the forward-looking statements, as Lavras Gold cannot guarantee that they will prove to be correct. . Because forward-looking statements address future events and conditions, they, by their very nature, involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. There can be no assurance that the shares of Lavras Gold will be listed on the TSXV. These and other risks are described in greater detail in Lavras Gold’s Form 2B listing application on the TSXV, which should be available under Lavras Gold’s profile on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof. Except as required by applicable securities laws, Lavras Gold undertakes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.