South Atlantic Gold Announces Memorandum of Understanding Signed with Ceará State, Brazil
TSX-V: SAO
South Atlantic Gold Announces Memorandum of Understanding
Signed with Ceará State, Brazil
Kelowna, British Columbia, July 22, 2022 - SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic”
or the “ Company”) is pleased to announce that it has entered into a Memorandum of Understanding
Agreement (“MOU” or the “Agreement”) with the government of Ceará State, Brazil to support South
Atlantic in the advancement and development of the Pedra Branca Project, located in Ceará State, Brazil.
Douglas Meirelles, CEO stated, “This signed MOU with the state government of Ceará represents a pledge
to assist, promote and aid the financing for the development of Ceará’s first gold mine. Although our short-
term exploration programs remain unaffected and while we work on the proper licensing and permitting,
this pledge represents a significant step in the Pedra Branca region and, more specifically, a significant
leap forward in the development of our asset.
“With this unprecedented Agreement in the state of Ceará, South Atlantic will work to advance its permits
and unlock a non-dilutive indicative funding of R$ 120 million ($30 million) which will come from various
sources and programs with governmental agencies , ranging from tax -exemption programs to direct
funding from economic development funds, all of which can ultimately add to and minimize future dilutive
financing of exploration and development activities of our asset Pedra Branca.”
Highlights of the Memorandum of Understanding
• The government of Ceará pledges to support the Company with permitting, license reviews and
financial and benefits programs that would advance the construction of a small-scale min ing
operation at Pedra Branca.
• The Company pledges to work cooperatively to encourage economic growth in the communities
surrounding the project area through sustainable ESG programs , local human resources
development and local supply chain prioritization, as the project advances.
• The government of Ceará has also pledged to assist South Atlantic with upwards of R$120 million
(C$30 million) in direct and indirect funding from activities related to tax-exemption and economic
development programs to support the exploration and future construction of the Pedra Branca
project.
The impetus behind the government’s decision is to help expedite the advancement of the project in the
region along with its associated economic development with jobs generation, supply chain development
and necessary investments to support the economic endeavor of this project.
For the Pedra Branca asset, the licensing and permitting process of a potential small scale mine will take
time. However, with the possibility to receive such non-dilutive funding, the Company will work in parallel
to advance its permits and license to unlock the proposed funding. The MOU does not, at this point in
time, provide clear and distinct reference to the financing amount that will be in tax -exemptions or the
amount of direct non -dilutive funding from the economic development programs. The final amount is
defined as part of the licensing and permitting process of the small sc ale or trial mine, at such point the
definition of the total size and necessary estimated funds for the complete endeavor will be made.
TSX-V: SAO
In parallel and going forward, the exploration team led by Marcelo Batelochi, Senior Exploration Manager,
and the recently formed Technical Committee will continue the exploration activities as per the outlined
Phase II plan press released on February 3, 2022 (click here to view) , which seeks to advance the
exploration and unlock further project value both inside and outside the target areas of the current mining
concession. As such, the Company plans to report on additional results from the recent drilling campaign
on areas that were previously never tested before, outside the main mining concession areas, in the near
future.
About South Atlantic Gold
South Atlantic Gold is an exploration company engaged in acquiring and adv ancing mineral properties
located in the Americas. Our flagship asset is the 100%-owned Pedra Branca project, located 280 km
southwest of Fortaleza, Cear á State, Brazil. South Atlantic Gold is focused on creating value for its
shareholders by engaging in t he development and acquisition of high -quality mineral assets located in
stable and mining-friendly jurisdictions. South Atlantic Gold is based in Kelowna, 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 this news release, please contact:
Anne Hite, Vice President, Investor Relations
T: 250-762-5777
Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
This news release contains statements that constitute "forward -looking Information", as such term is used in
applicable Canadian securities laws . Such forward -looking information involves known and unknown risks,
uncertainties and other factors that may cause the C ompany’s actual results, performance or achievements, or
developments in the industry to differ materially from the anticipated results, performance or achievements
expressed or implied by such forward-looking information. Forward-looking information includes statements that are
not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "wi ll,"
"would," "may," "could" or "should" occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based
on information available on the date hereof, by its nature forward-looking information involves assumptions and
known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity,
performance or achievements, or other future events, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking information. There can be no assurance that the
Fundamental Acquisition will be completed as proposed or at all.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and
uncertainties associated with general economic conditions; the Covid -19 pandemic; adverse industry events; the
receipt of required regulatory approval s and the timing of such approvals; that the Company maintains good
relationships with the communities in which it operates or proposes to operate, future legislative and regulatory
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developments in the mining sector; the Company ’s ability to access suffici ent capital from internal and external
sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and
generally; the ability of the Company to implement its business strategies; competition; the risk th at any of the
assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks
associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that
results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties
applicable to mineral exploration and development activities and to the Company, including as set forth in the
Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF
THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD
NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE
WITH APPLICABLE LAWS.
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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.