TORONTO, ON / ACCESSWIRE / March 2, 2023 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is pleased to announce that it has entered into an amended and restated metals purchase and sale agreement (the "Agreement") with Sprott Private Resource Streaming and Royalty (B) Corp. ("Sprott"), to include the concessions acquired by the Company in its acquisition of Minera Mariana Argentina S.A. in 2020 (see the Company's news release dated October 28, 2020), broadening the stream area including, most notably, production from the Las Calandrias heap leach project where production is expected to commence in Q2/23. The Agreement also provides Cerrado with an additional US$10 million in funding in the form of an additional deposit (the "Deposit") against future production. Substantially all other terms of the Agreement are materially unchanged.
Please refer to Table 1 below for a summary of certain key commercial terms which were amended under the Agreement as compared to the original stream agreement entered into between the parties in 2020 (the "Original Agreement").
Payment of the Deposit is expected to occur on or about March 7, 2023 and issubject to the satisfaction of certain conditions, including there being no material adverse effect since the date of the Agreement and to the parties receiving any required regulatory approvals.
Mark Brennan, CEO & Chairman of the Company, commented, "We are very pleased to be expanding our partnership with our friends at Sprott Streaming and Royalty. We view this additional investment as a strong indication of support for our ongoing development plans to increase the gold production capacity at MDN from 50,000 ozs to approximately 90,000 ozs by mid 2024 with the ongoing development of two heap leaching facilities. Further, the additional inflow of funds is expected to allow the Company to capitalize on the success at Las Calandrias and provide additional non-dilutive financing to fund our development plans".
Mike Harrison, Managing Partner of Sprott, commented, "Our continued support of Cerrado Gold reflects the success achieved at MDN to date and our confidence in the quality of the Las Calandrias heap leach project to expand the production at MDN. This funding will provide increased exposure to a well performing asset in a highly prospective region."
Table 1. Summary of Certain Amended Terms
Step-Down Trigger (Threshold Amount)
21,250 Gold Equivelent Ounces ("GEO"s)
A copy of the Agreement will be filed on the Company's SEDAR profile at www.sedar.com.
In addition, Cerrado announces that Mr. Stephen Shefsky has resigned as a Director and Co-Chairman of the Company in order to focus his time on other business opportunities.
Mark Brennan, CEO & Chairman of the Company, commented, "We would like to thank Stephen for his years of service and especially wish to acknowledge his role in the foundation of the Company. On behalf of the Board and entire Management team, we wish him well with his furture endeavours".
Stephen Shefsky commented, "It has been an honour and privilege to work with such a talented and dedicated team and I thank Mark and the team for their exemplary stewardship of the Company. Although I am now focusing other opportunities, I will continue to follow the Cerrado story closely and I look forward to the continued success of the Company."
CEO and Co-Chairman
Vice President, Corporate Development
Cerrado is a Toronto based gold production, development and exploration company focused on gold projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás mine in Santa Cruz province, Argentina, and the highly prospective development project, Monte Do Carmo located in Tocantins State, Brazil.
At Minera Don Nicolas, Cerrado is maximising asset value through further operation optimization and continued production growth. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and production. The Serra Alta deposit Indicated Resources of 541 kozs of contained gold and Inferred Resources of 780 kozs of contained gold. The Preliminary Economic Assessment demonstrates robust economics as well as the potential to be one of the industry's lowest cost producers. Cerrado also holds an extensive and highly prospective 82,542 ha land package at Monte Do Carmo.
For more information about Cerrado please visit the Company's website at: www.cerradogold.com.
This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements regarding the expected date of funding of the Deposit, the expected production from the Las Calandrias heap leach project, development plans to increase gold production, the use by Cerrado of the Deposit and the filing of the Agreement on SEDAR. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to [the timing of production, rates of production, operating costs and capital costs of the Las Calandrias project]. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Cerrado Gold Inc.