Toronto, Ontario–(Newsfile Corp. – April 4, 2022) – Eric Sprott announces that he acquired common shares of Lavras Gold Corp., (LG Shares) pursuant to the closing of the plan of arrangement (Arrangement) involving the acquisition of Amarillo Gold Corporation by a subsidiary of Hochschild Mining PLC and spinout of Lavras Gold on April 1, 2022, as announced by them on April 1, 2022. Amarillo Gold is now a wholly owned subsidiary of Hochschild Mining.
Pursuant to the Arrangement, among other things, the holders of common shares of Amarillo Gold (AG Shares) received one LG Share and cash consideration of C$0.40 in exchange for each AG Shares.
As a result of the Arrangement, Mr. Sprott through, 2176423 Ontario Ltd. (a company he beneficially owns), received 68,300,000 LG Shares representing approximately 16.6% of the outstanding LG Shares on a non-diluted basis. Prior to the Arrangement, Mr. Sprott did not beneficially own or control any securities of Lavras Gold. As a result of the arrangement, Mr. Sprott and 2176423 Ontario Ltd. no longer hold any AG Shares and ceased to be insiders of Amarillo Gold.
The LG Shares are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Lavras Gold including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Amarillo Gold is located at Suite 82 Richmond Street East, Suite 201 Toronto, ON M5C 1P1. Lavras Gold is located at 1055 West Hastings Street, Suite1700, Vancouver, British Columbia, V6E 2E9. A copy of the relevant early warning report with respect to the foregoing will appear on each of the companies’ profiles on the System for Electronic Document Analysis and Retrieval at www.sedar.com and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
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