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(Wallace Refiners) – Pilar Gold, a private Canadian company with plans to seek a public listing later this year, announced today that on April 16, 2021, the company acquired the Pilar gold mine in Brazil from Equinox Gold for aggregate consideration of US$38 million in cash, a 9.9% equity interest in Pilar Gold, and a 1% net smelter returns royalty on production from the Pilar gold mine.
The company is also announced that it successfully completed a private placement of 66,630,938 shares at an issue price of C$0.25/share for gross proceeds of C$16,630,938. The net proceeds from the private placement will be used as partial payment towards the acquisition of the Pilar gold mine, and for associated costs, and general working capital purposes.
CEO Jeremy Gray commented, “We are privileged to acquire an asset of the calibre of the Pilar gold mine, which will be our foundation asset for the company. The operation has an outstanding production history, high quality infrastructure and a substantial gold resource that we believe will support a long-mine life. We look forward to working with the Pilar gold mine’s existing team and investing in the operation to increase production and gold reserves. Pilar Gold is excited to use this acquisition to form the foundation for an aggressive regional growth strategy.”
The Pilar gold mine is in the mining friendly state of Goiás, Brazil and enjoys paved access and nearby towns that accommodate the work force of approximate 750 employees and consultants.
The Pilar gold mine is currently producing at an annualized rate of approximately 40,000 ounces Au per annum. The development and infrastructure include three underground mines, Pilar, Maria Lázara and Caiamar along with an open pit development opportunity at adjacent Tres Buraços. The backbone of the Pilar gold mine is an efficient 4,000 tonne per day mill with average gold recovery rates of approximately 92%.
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