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Hochschild Mining has agreed to buy Brazilian gold development company Amarillo Gold in a C$164.5 million cash deal to obtain the Posse gold development project in Goais, Brazil.
Amarillo Gold's Mara Rosa in Goais, Braziljpg
Hochschild will pay C40c per share, a 78% premium over Amarillo's Monday closing price. The premium may sound high but the company views the deal as being relatively cheap at about 0.
Company looks to new projects in Brazil, Canada
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