Hochschild to acquire Brazil gold project from Canadian junior

London-listed Hochschild Mining agreed to acquire the Monte do Carmo gold project in Brazil’s Tocantins state from Canada's Cerrado Gold.

The acquisition, to be made via Hochschild subsidiary Amarillo Mineração do Brasil, is valued at US$60mn.

"With the project holding significantly advanced permitting and compelling exploration upside potential, the transaction aligns with our strategy of adding high quality, pre-production assets where our construction, operational and brownfield exploration expertise provides us with a competitive advantage," Hochschild CEO Eduardo Landin said in a statement. 

"With our Mara Rosa mine, also located in Brazil, in the state of Goiás, recently achieving first production, we are looking forward to commencing a brownfield exploration program at Monte do Carmo which will allow us to assess the next steps for its development and its potential to generate sustainable value for Hochschild and local stakeholders," he added. 

Meanwhile, Toronto-based junior Cerrado Gold said it will be well-positioned to drive future growth via its Minera Don Nicolas gold mine in Argentina and to complete a feasibility study at its Mont Sorcier iron development project in Quebec.