Tucano Gold Enters into Definitive Agreement to Purchase Mina Tucano Ltda.

2023-08-17 20:20:16

Calgary, Alberta, Canada (ots/PRNewswire) – Tucano Gold Inc is pleased to announce that it has entered into a definitive agreement to acquire 100% interest in Mina Tucano Ltda and 100% interest in Tucano Resources Mineração Ltda for consideration of BRL 1.00 each. At the same time, a payment plan has been proposed to Mina Tucano’s creditors that, if approved and confirmed by the court, will allow operations to resume in Q4 2023, making Mina Tucano the largest employer in the Brazilian state of Amapá.

Mina Tucano, acquired by Great Panther Mining Ltd. in 2019 has a 100% interest in the Tucano Gold Mine, located on a 1,973 square kilometer property in the highly prospective Vila Nova Greenstone Belt of the Guyana Shield. The operation includes a state-of-the-art 3.5 Mtpa CIL facility and has produced over 1.5 million ounces since opening in 2005.

Great Panther issued an updated 43-101 report on June 8, 2022 with Proven and Probable Reserves of 12.9 million tonnes at 1.59 g/t for 656,000 ounces. Its M, I & I resource is 1.8 million ounces with significant scope for expansion.

We are delighted to be collaborating with the Mina Tucano team led by Julio Carneiro and Joter Siqueria. It has our full support in reopening operations in the fourth quarter. We anticipate that Mina Tucano will gradually increase annual production to 100,000 ounces over the medium term.

After the successful founding of Pilar Gold Inc and Laiva Gold Inc The Tucano Gold team has accumulated a wealth of experience and has given Mina Tucano access to additional funding sources and shared technical expertise. With a combined mill capacity of 7.3 million tonnes per year, we are on track to achieve 300,000 ounces of annual production from Tucano Gold, Laiva Gold and Pilar Gold by 2025

Tucano Gold has received strong expressions of interest in its seed round, priced at a fraction of today’s replacement cost of building such a world-class complex. We believe the timing is right to buy a large, long-lived gold mine like Mina Tucano ahead of gold’s next bullish cycle in 2024, following Laiva Gold’s acquisition of Europe’s largest gold mill in Finland earlier this year.

Investors in Tucano Gold’s seed round will also receive a no-cost portion of Tucano Gold Exploration Inc’s “Exploration Spin-Outs” in Q1 2024. Tucano Gold Exploration is believed to have the largest and most prospective properties on the Guyana Shield .

We have had a strong track record of shareholder returns since our first seed round at Pilar Gold at $0.10 per share in January 2021 (last round $1.00 in November 2022) and believe this round will be just as successful at Tucano Gold how production will be ramped up and Mina Tucano will once once more be a great success for all stakeholders.

Questions & contact:

Contact:
Jeremy Gray | CEO von Tucano Gold [e-mail]
[phone]
edward balme | Leiter IR [e-mail]
[phone]
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