Amarillo Gold Corp to be acquired by Hochschild Mining PLC

Nov 30, 2021 By MarketDepth

Breaking Headlines Investing Mining What's Hot

Gold Mine Truck

Amarillo Gold Corporation (TSXV: AGC) (OTCQB: AGCBF) is set to be acquired by Hochschild Mining PLC in a deal worth an estimated C$164.5 million.

Plan of Arrangement

According to the announcement, Hochschild will acquire all of the outstanding shares of Amarillo by way of a plan of arrangement, with Amarillo shareholders set to receive cash consideration of C$0.40 and one share of a new Brazil-focused exploration company, Lavras Gold Corp. (“Lavras SpinCo”).

“This acquisition delivers an immediate and compelling opportunity for our shareholders to monetize their investment in Amarillo at an attractive valuation and significant premium to the current and historical trading price of Amarillo’s shares.”

Mike Mutchler, President and Chief Executive Officer

The Toronto based Lavras SpinCo will hold all assets and rights related to the Lavras do Sul gold project in the state of Rio Grande do Sul. Furthermore, once the acquisition is complete, Lavras SpinCo anticipates to complete a share consolidation immediately thereafter. 

“The transaction also provides our shareholders with additional value through their continued participation in the future exploration and advancement of the prospective Lavras Project through Lavras SpinCo, where our leadership team will be focussed on unlocking the true value of this project.” 

Mike Mutchler, President and Chief Executive Officer