Mina Tucano files revised version of its judicial reorganization plan

RIO DE JANEIRO, Aug. 26, 2023 /PRNewswire/ -- Mina Tucano Ltda. – Em Recuperação Judicial ("Mina Tucano" or "Company"), Beadell (Brazil) Pty Ltd. – Em Recuperação Judicial and Beadell (Brazil 2) Pty Ltd. – Em Recuperação Judicial ("Shareholders" and, along with Mina Tucano, the "Tucano Group") hereby inform the market in general that, on August 24, 2023, the Tucano Grupo filed a revised version of its plan of judicial reorganization ("Plan") in the court records of the judicial reorganization proceedings No. 0245214-56.2022.8.19.0001, underway before the 1^st Court of Corporate Matters of the City of Rio de Janeiro, State of Rio de Janeiro ("Judicial Reorganization").

The Plan is the result of the review by the Tucano Group of the means of reorganization necessary to allow for a comprehensive solution to overcome its financial and operational challenges.

In the first half of 2023, Mina Tucano and its Shareholders assessed that a third-party investment would be crucial to allow the continuation and development of the activities at Mina Tucano. In this context, the Tucano Group commenced a private competitive process to seek market investors that would be willing and able to fund and take over the operations of the Mina Tucano. The Tucano Group engaged in negotiations with several potential investors, which led to the execution of fourteen confidentiality agreements and the receipt of three binding offers.

Pilar Gold Inc. ("Pilar"), a well-established player in the gold mining sector, submitted a binding offer for the acquisition of shares issued by Mina Tucano and Tucano Resources Mineração Ltda. ("Transaction" and "Tucano Resources"). This offer was by far the best offer received by the Tucano Group from the technical and financial aspects combined, notably due to Pilar's ability to propose the best payment conditions to creditors of the Tucano Group in comparison to the other competitors, as well as to demonstrate the necessary financial conditions to swiftly resume operations in Mina Tucano and honor the offer in its entirety. Based on such offer, the Tucano Group and Tucano Gold Inc. ("Buyer"), a vehicle specifically constituted for the Transaction, entered into a Quota Purchase and Sale Agreement.

The Transaction comprises inter alia (i) the acquisition of the shares issued by Mina Tucano and Tucano Resources; (ii) the capitalization of Mina Tucano so that it can resume its operations at the mine site; and (iii) certain terms and conditions for the repayment of creditors of Mina Tucano. The completion of the Transaction, with the transfer of the shares of Mina Tucano and Tucano Resources to the Buyer, is subject to certain conditions precedent that are usual in transactions of this nature, including the approval of the Plan by the Judicial Reorganization creditors of the Tucano Group.

Mina Tucano and its Shareholders are confident that the Transaction is the best and most comprehensive solution to the challenges that led to the filing of the Judicial Reorganization, allowing an expedited continuation of the operations of Mina Tucano and therefore generation of value to creditors, employees and other stakeholders.

The Tucano Group and the Buyer continue to hold productive discussions with the creditors of the Tucano Group, which we expect to lead to a Plan approval in the next general meeting of creditors scheduled for September 15, 2023.

The Company will continue keeping its creditors informed about the development of the matters addressed under this notice and is available for any clarification the creditors deem necessary.

CONTACT: 
JULIO CESAR CARNEIRO  
+55 21 98245-2211 
julio.carneiro@tucanoresources.com.br

View original content to download multimedia:https://www.prnewswire.com/news-releases/mina-tucano-files-revised-version-of-its-judicial-reorganization-plan-301910594.html

SOURCE Mina Tucano