Golden Shield Resources has announced a strategic move by entering into a non-binding letter of intent to acquire all issued and outstanding securities of Tucano Gold. This acquisition involves an exchange of securities in Golden Shield Resources for those in Tucano Gold.
The acquisition is a pivotal step for Golden Shield Resources, as it aims to leverage exploration opportunities at Marudi and unlock the value 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 underexplored gold belt, providing Golden Shield Resources with significant geological knowledge, operational synergies, and strategic advantages for future discoveries.
Tucano Gold's primary asset, Mina Tucano, is an open-pit mine with substantial underground development potential. The site is equipped with state-of-the-art infrastructure capable of processing up to 3.5 million tonnes of ore annually. Currently, Mina Tucano is on care and maintenance but is scheduled for a production restart in Q4 2024. This acquisition is expected to enhance Golden Shield Resources' operational capabilities and expedite its path to production, thereby delivering significant value to its shareholders.
