- Eric Sprott has announced his voting support agreement for Hochschild’s acquisition of Amarillo Gold (AGC)
- Sprott’s 2176423 Ontario Ltd. owns 17.7 per cent of Amarillo shares
- The proposed acquisition comes at a 66-per-cent premium and is expected to close in Q1 2022 pending Amarillo shareholder approval
- Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil
- Amarillo Gold (AGC) closed up by 80 per cent trading at $0.405 per share
Eric Sprott has announced his voting support agreement for Hochschild’s acquisition of Amarillo Gold (AGC).
Sprott’s 2176423 Ontario Ltd. entered into the agreement as the owner of 68,300,000 Amarillo shares representing 17.7 per cent of the company.
Pursuant to the potential acquisition, each share of Amarillo will be exchanged for C$0.40 plus one share of a new Brazil-focused exploration company, Lavras Gold.
Lavras will be capitalized with $10 million in cash and hold all assets and rights with respect to the Lavras do Sul Gold Project.
The cash consideration represents a 66-per-cent premium over Amarillo shares’ 20-trading day volume-weighted average trading price.
The total transaction value is $164.5 million excluding Lavras’ asset value and $10 million in cash.
Amarillo management views the arrangement as a culmination of its exploration and development successes in Brazil while maintaining shareholder participation in upcoming exploration.
The arrangement is subject to the approval of Amarillo shareholders. A special meeting is expected to be held in early 2022 for this purpose.
Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil.
Amarillo Gold (AGC) closed up by 80 per cent trading at $0.405 per share.