Brazil-focused Amarillo Gold is being acquired by Hochschild Mining (LON:HOC) for $164.5 million.
The companies announced the transaction today.
Hochschild is paying 40 cents per share for Amarillo, a premium of 66% over the 20-trading day volume weighted average trading price of the Amarillo shares on the TSX Venture Exchange of C$0.24.
Amarillo is in the development stage Posse Gold Project is on the company’s Mara Rosa Property in Goiás State.
Hoschschild has operations throughout the Americas. In 2021 Hochschild will produce between 31 to 32 million ounces of silver equivalent ounces at an all-in-sustaining cost of $13.2 per Ag Eq.
Earlier this month Hochschild was in a dispute with Peruvian authorities over an extension for its operations in southern Ayacucho, Peru.
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