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

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."