Golden Shield Resources has entered into a non-binding letter of intent to acquire all issued and outstanding securities of Tucano Gold in exchange for securities in Golden Shield Resources. Executive Chairman Leo Hathaway announced the strategic move, highlighting the potential benefits for the company.
This acquisition aims to position Golden Shield Resources to benefit from continued exposure to exploration opportunities at Marudi, as well as the potential of Tucano Gold's near-producing, high-grade gold asset in Brazil. Both Marudi and Tucano Gold are located in the same geologically rich but poorly understood gold belt, providing the resultant company with significant geological knowledge, operational synergies, and strategic advantages for future discoveries.
Tucano Gold's primary asset, Mina Tucano, is an open-pit operation with substantial underground development potential. Equipped with state-of-the-art infrastructure capable of processing up to 3.5 million tonnes of ore per year, Mina Tucano is currently on care and maintenance but is scheduled for a production restart in Q4 2024. The acquisition is expected to enhance Golden Shield Resources' operational capabilities and expedite its path to production, delivering significant value to its shareholders.
