Corporate Profile

Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) is building Brazil’s next profitable gold mine.

We have approximately C$57 million in cash, 382.1 million shares outstanding, and a market cap of approximately $115 million. Amarillo recently closed underwritten private placement and bought deal prospectus offerings that raised gross proceeds of $57.2 million. The board and management team own approximately 6% of the shares outstanding.

We are advancing two gold projects in Brazil, where we have a strong social license to operate. Both are in mining-friendly states, and close to excellent infrastructure.

Our flagship asset is our development stage Posse Gold Project on our Mara Rosa Property in the State of Goiás. A positive feasibility study shows that Posse has a 10-year mine life at an AISC to produce gold of US$631 per ounce. With mineralization four kilometres northeast of the deposit, which is open at depth, there are many opportunities to expand the resources at Mara Rosa and add to Posse’s mine life.

Using a gold price of US$1,730 per ounce and a foreign exchange rate of 5.3:1 for the Brazilian real to the U.S. dollar, the project has an after-tax internal rate of return of 50%, an after-tax payback of 1.5 years, and a net present value of US$360 million. We are finalizing our construction debt financing and hope to receive the License to Install this fall, which would allow us to start construction.

Our second asset is its exploration stage Lavras do Sul Project in Grande do Sul State. It has more than 22 projects centred around historic gold workings.

September 2020