(TheNewswire)
Vancouver, British Columbia – TheNewswire - August 10, 2023 - South Atlantic Gold Inc. (TSX-V:SAO) (“ South Atlantic ” orthe “ Company ”) continues to work to add to thenumber of creditors of Mina Tucano Ltda., Beadell (Brazil) Pty Ltd.and Beadell (Brazil 2) Pty Ltd. (such three entities and thesubsidiaries of Mina Tucano Ltda., collectively, the “ Tucano Group ”) thatsupport or give priority to South Atlantic’s indicative proposal toacquire entities of the Tucano Group under Judicial ReorganizationProceedings (the “ JudicialProcess ”), pursuant to a plan ofreorganization to be approved by creditors and confirmed by therelevant court in a manner favourable to all stakeholdersinvolved.
Highlights
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The Company would like to encourage all officiallylisted creditors of the Tucano Group to contact South Atlantic’ssubsidiary in Brazil through the contact information made available inthe Judicial Process, as the Company would like to engage with allcreditors regarding their potential interests and potential terms ofnegotiation.
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The Judicial Process has many stages. At the currentstage, the process requires a decision to be made by a majority of thecreditors 1 of Tucano Group ineach of several different classes of creditors bymid-September.
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Throughout the next few weeks, South Atlanticanticipates that it will continue to grow its base of supportivecreditors, which could culminate in a plan reflecting SouthAtlantic’s indicative proposal being presented by the supportingparties and approved by the required majorities.
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As previously disclosed, certain creditors of TucanoGroup have already expressed that they have given priority to theproposal made by South Atlantic to acquire Tucano Group. SouthAtlantic has also received letters of priority and other similarsupport from creditors that are strong influencers and leaders in themining space in Brazil.
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The Judicial Process may have several differentoutcomes and many additional phases as it is ultimately dependent onthe decision(s) of the creditors and therelevant court 1 .
In the event that no restructuring plan is accepted bythe creditors (including the plan reflecting South Atlantic’sproposal or the plan from the debtor or any future variations), thecomplete bankruptcy of Tucano Group is a potential outcome, which, inour view, would not be advantageous for any stakeholder, including thecreditors themselves.
South Atlantic has the right to terminate negotiationsat any time should negotiations with the creditors of the Tucano Groupfail to advance or if the Company is not satisfied, in its solediscretion, with the results of its negotiations or its due diligencereview of the Tucano Mine or other assets. There can be no assurancethat the creditors of the Tucano Group will favour the plan reflectingSouth Atlantic proposal.
About South Atlantic Gold Inc.
South Atlantic is an exploration company engaged inacquiring 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 isfocused 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 is based inKelowna, British Columbia, and is listed on the TSX-V under the symbol“SAO”.
ON BEHALF OF THE BOARD
Douglas Meirelles, President and CEO
For more information regarding thisnews release, please contact:
Douglas Meirelles, President and CEO
T: 250-762-5777
Email: ir@southatlanticgold.com
Cautionary NoteRegarding Forward-Looking Information
This news release containsstatements that constitute “forward-looking Information”, as suchterm is used in applicable Canadian securities laws. Suchforward-looking information involves known and unknown risks,uncertainties and other factors that may cause the Company’s actualresults, performance or achievements, or developments in the industryto differ materially from the anticipated results, performance orachievements expressed or implied by such forward-looking information.Forward-looking information includes statements that are nothistorical facts and are generally, but not always, identified by thewords “expects,” “plans,” “anticipates,” “believes,”“intends,” “estimates,” “projects,” “potential” andsimilar expressions, or that events or conditions “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.
Examples of such assumptions, risksand uncertainties include, without limitation, assumptions, risks anduncertainties associated with general economic conditions;; adverseindustry events; the receipt of required regulatory approvals and thetiming of such approvals; that the Company maintains goodrelationships with the communities in which it operates or proposes tooperate, future legislative and regulatory developments in the miningsector; the Company’s ability to access sufficient capital frominternal and external sources, and/or inability to access sufficientcapital on favorable terms; mining industry and markets in Canada andgenerally; the ability of the Company to implement its businessstrategies; competition; the risk that any of the assumptions provenot to be valid or reliable, which could result in delays, orcessation in planned work, risks associated with the interpretation ofdata, the geology, grade and continuity of mineral deposits, thepossibility that results will not be consistent with the Company’sexpectations, as well as other assumptions risks and uncertaintiesapplicable to mineral exploration and development activities and tothe Company, including as setforth in the Company’s public disclosure documents filed on theSEDAR 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. READERS SHOULDNOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULDNOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANYMAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANYPARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLELAWS.
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.
1 TheJudicial Process is public, details on the creditors listing andfurther detailed information is available on:https://www.zveiter.com.br/post/mina-tucano-recupera%C3%A7%C3%A3o-judicial
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