(TheNewswire)
Kelowna, British Columbia – TheNewswire - July 22, 2022 - SOUTH ATLANTIC GOLD INC.(TSXV:SAO) (“ SouthAtlantic” or the “ Company” ) is pleased to announce that it has entered into aMemorandum of Understanding Agreement (“MOU” or the“Agreement”) with the government of Cear á State, Brazil to support South Atlantic in the advancement anddevelopment of the Pedra Branca Project, located in Cear á State, Brazil.
Douglas Meirelles , CEO stated, “This signed MOU with the stategovernment of Cear árepresents a pledge to assist, promote and aid the financing for the development ofCear á ’s first gold mine. Although ourshort-term exploration programs remain unaffected and while we work onthe proper licensing and permitting, this pledge represents asignificant step in the Pedra Branca region and, more specifically, asignificant leap forward in the development of our asset.
“With this unprecedented Agreementin the state of Cear á , South Atlantic willwork to advance its permits and unlock a non-dilutive indicativefunding of R$ 120 million ($30 million) which will come from varioussources and programs with governmental agencies, ranging fromtax-exemption programs to direct funding from economic developmentfunds, all of which can ultimately add to and minimize future dilutivefinancing of exploration and development activities of our asset PedraBranca.”
Highlights of the Memorandum ofUnderstanding
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The government of Cear á pledges to support theCompany with permitting, license reviews and financial and benefitsprograms that would advance the construction of a small-scale miningoperation at Pedra Branca.
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The Company pledges to work cooperatively to encourage economic growthin the communities surrounding the project area through sustainableESG programs, local human resources development and local supply chainprioritization, as the project advances.
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The government of Cear has also pledged to assist South Atlantic withupwards of R$120 million (C$30 million) in direct and indirect fundingfrom activities related to tax-exemption and economic developmentprograms to support the exploration and future construction of thePedra Branca project.
The impetus behind the government’s decision is to help expedite theadvancement of the project in the region along with its associatedeconomic development with jobs generation, supply chain developmentand necessary investments to support the economic endeavor of thisproject.
For the Pedra Branca asset, the licensing and permitting process of apotential small scale mine will take time. However, with thepossibility to receive such non-dilutive funding, the Company willwork in parallel to advance its permits and license to unlock theproposed funding. The MOU does not, at this point in time, provideclear and distinct reference to the financing amount that will be intax-exemptions or the amount of direct non-dilutive funding from theeconomic development programs. The final amount is defined as part ofthe licensing and permitting process of the small scale or trial mine,at such point the definition of the total size and necessary estimatedfunds for the complete endeavor will be made.
In parallel and going forward, the exploration team led by MarceloBatelochi, Senior Exploration Manager, and the recently formedTechnical Committee will continue the exploration activities as perthe outlined Phase II plan press released on February 3, 2022 (click here to view), which seeksto advance the exploration and unlock further project value bothinside and outside the target areas of the current mining concession.As such, the Company plans to report on additional results from therecent drilling campaign on areas that were previously never testedbefore, outside the main mining concession areas, in the near future.
South Atlantic Gold is an exploration company engagedin acquiring and advancing mineral properties located in the Americas.Our flagship asset is the 100%-owned Pedra Branca project, located 280km southwest of Fortaleza, Ceará State, Brazil. South Atlantic Goldis focused on creating value for its shareholders by engaging in thedevelopment and acquisition of high-quality mineral assets located instable and mining-friendly jurisdictions. South Atlantic Gold is basedin Kelowna, British Columbia, and is listed on the TSX-V under thesymbol “SAO”.
ON BEHALF OF THE BOARD
Douglas Meirelles, President and CEO
For more information regarding thisnews release, please contact:
Anne Hite, Vice President, Investor Relations
T: 250-762-5777
Email: ir@southatlanticgold.com
Cautionary NoteRegarding Forward-Looking Information
This news release containsstatements that constitute "forward-lookingInformation", as suchterm is used in applicable Canadian securities laws . Such forward-looking informationinvolves known and unknown risks, uncertainties and other factors thatmay cause the Company’s actual results, performance or achievements,or developments in the industry to differ materially from theanticipated results, performance or achievements expressed or impliedby such forward-looking information. Forward-looking informationincludes statements that are not historical facts and are generally,but not always, identified by the words "expects,""plans," "anticipates," "believes,""intends," "estimates," "projects,""potential" and similar expressions, or that events orconditions "will," "would," "may,""could" or "should" occur.
Although the Company believes theforward-looking information contained in this news release isreasonable based on information available on the date hereof, by itsnature forward-looking information involves assumptions and known andunknown risks, uncertainties and other factors which may cause ouractual results, level of activity, performance or achievements, orother future events, to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking information. There can be no assurance that the Fundamental Acquisition will becompleted as proposed or at all.
Examples of such assumptions, risksand uncertainties include, without limitation, assumptions, risks anduncertainties associated with general economic conditions; theCovid-19 pandemic; adverse industry events; the receipt of requiredregulatory approvals and the timing of such approvals; that theCompany maintains good relationships with the communities in which itoperates or proposes to operate, future legislative and regulatorydevelopments in the mining sector; the Company’s ability to accesssufficient capital from internal and external sources, and/orinability to access sufficient capital on favorable terms; miningindustry and markets in Canada and generally; the ability of theCompany to implement its business strategies; competition; the risk that any of theassumptions prove not to be valid or reliable, which could result indelays, or cessation in planned work, risks associated with theinterpretation of data, the geology, grade and continuity of mineraldeposits, the possibility that results will not be consistent with theCompany’s expectations, as well as other assumptions risks anduncertainties applicable to mineral exploration and developmentactivities and to the Company, including as set forth in theCompany’s public disclosure documents filed on the SEDAR website at www.sedar.com .
THEFORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTSTHE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASEAND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERSSHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION ANDSHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THECOMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATIONAT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITHAPPLICABLE LAWS.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release .
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