- South Atlantic Gold Inc. (SAO) has signed a memorandum of understanding (MOU) with the government of Ceará State, Brazil for the Pedra Branca Project
- The MOU is a pledge to assist, promote and aid the financing for the development of Ceará’s first gold mine
- South Atlantic will encourage economic growth in the nearby communities
- Licensing and permitting for the potential small scale mine will take time
- The company will still work in parallel to advance its permits and license to unlock the proposed funding
- South Atlantic Gold Inc. (SAO) is up 12.50 per cent and is trading at $0.04 per share as of 2:56 p.m. ET
South Atlantic Gold (SAO) has signed a memorandum of understanding (MOU) with the government of Ceará State, Brazil.
To advance the Pedra Branca Project, the MOU represents a pledge to assist, promote and aid the financing for the development of Ceará’s first gold mine.
“With this unprecedented agreement in the state of Ceará, South Atlantic will work to advance its permits and unlock a non-dilutive indicative funding of [$30 million] which will come from various sources and programs with governmental agencies, ranging from tax-exemption programs to direct funding from economic development funds, all of which can ultimately add to and minimize future dilutive financing of exploration and development activities of our asset Pedra Branca,” Douglas Meirelles, CEO of South Atlantic, said.
South Atlantic stated it will work to encourage economic growth in the communities surrounding the project area through sustainable ESG programs, local human resources development and local supply chain prioritization, as the project advances.
According to the company, the licensing and permitting process of a potential small scale mine will take time for the Pedra Branca asset. Still, South Atlantic will work in parallel to advance its permits and license to unlock the proposed funding.
Exploration activities on the project will continue and the company plans to release the additional results from the recent drilling campaign on newly tested areas shortly
South Atlantic Gold Inc. (SAO) is up 12.50 per cent and is trading at $0.04 per share as of 2:56 p.m. ET.