Hochschild Mining buys Cerrado's Monte Do Carmo Project in Brazil

(Sharecast News) - Hochschild Mining said on Wednesday that its subsidiary, Amarillo Mineração, had exercised the right buy the Monte Do Carmo Project in Brazil from Cerrado Gold for $60m.

Amarillo Mineração will make cash payments to Cerrado of $30m prior to the date of the closing of the deal.

This is in addition to the $15m which has been deemed paid in respect of the transaction, and a further $15m payable at certain milestones after closing, giving a total consideration of $60m.

Hochschild announced in June that its shareholders had approved the transaction.

Chief executive Eduardo Landin said: "Following the successful commissioning and ramp-up of Mara Rosa, I am delighted that we have been able to move the Monte do Carmo project, in the neighbouring state of Tocantins, from option status to a fully integrated part of our project pipeline.

"We have conducted an extensive exploration and twin drilling programme which has returned encouraging results giving us confidence in our ability of defining a compelling project. We believe that we have the right team in place to deliver an exciting opportunity for all stakeholders."