Equitas Resources (EQT.V) was halted this morning ‘pending news’, and the company has now released it has completed the acquisition of Alta Floresta Gold, which owned a 60% interest in several Brazilian gold properties. The completion of this deal wasn’t a surprise, but it’s positive to see Equitas now owns 100% of the properties rather than the 60% Alta Floresta owned.
Equitas has issued almost 104 million new shares to the shareholders of Alta Floresta as consideration for the sale, and the company will now immediately prioritize an increased gold production at the flagship Cajueiro project. The cash flow, as well as the proceeds of the recently closed financing raising C$1.5M will also be used to increase the existing resource estimate on the gold projects.
We expect to hear more details about the project and the company’s plans in the next few weeks and will update you accordingly!
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The author has no position in Equitas Resources. Equitas is not a sponsor of the website, but affiliated company Zimtu Capital is. Please read the disclaimer
