Cabral Gold Receives Second and Final Tranche Regarding the NSR Royalty Agreement with Osisko Gold Royalties on the Cuiú Cuiú Gold Project, Brazil
Cabral Gold Receives Second and Final Tranche Regarding the
NSR Royalty Agreement with Osisko Gold Royalties
on the Cuiú Cuiú Gold Project, Brazil
Vancouver, British Columbia – July 28, 2023 – Cabral Gold Inc. (“Cabral” or the
“Company”) (TSXV: CBR) (OTC: CBGZF) is pleased to announce that it has received the
second and final US$2.5 million tranche relating to the royalty agreement with Osisko Gold
Royalties Ltd. (“Osisko”) (OR: TSX & NYSE) announced on July 12, 2023 pursuant to which
Osisko agreed to purchase a 1% net smelter return (“NSR”) royalty on the Cuiú Cuiú gold
project for a total cash consideration of US$5 million.
Cuiú Cuiú Project
Cuiú Cuiú is an advanced gold exploration and development project located in the state of Para,
Brazil, immediately adjacent to the Tocantinzinho gold project which is currently under
construction.
The Cuiú Cuiú project hosts NI 43-101 compliant mineral inventory of 21.6 M @ 0.87 g/t gold
(604,000oz) in the Indicated Resources category and 19.8 Mt @ 0.84 g/t gold (534,500 oz) in
the Inferred Resources category, as per the 43-101 technical report dated October 12, 2022.
A Prefeasibility Study considering potential exploitation of weathered oxide saprolitic gold
mineralization is currently being undertaken by Ausenco. If positive, the study should pave the
way for a construction decision for trial mining and heap-leach processing of the near-surface
oxide gold mineralization at Cuiú Cuiú.
Details of the Transaction
Cabral has granted Osisko a 1% NSR royalty from the production of all products from the Cuiú
Cuiú property. The total consideration is US$5 million which has been paid in two tranches;
US$2.5 million was paid on closing and the remaining US$2.5 million was paid on July 26, 2023
following the registration of certain security pledges.
Following the completion of a Feasibility Study, Cabral will pay Osisko US$250,000 on the date
thereof and each subsequent anniversary of said completion by way of an advance payment,
until the commencement of commercial production. These payments shall be credited against
future royalty payments due under the royalty agreement.
The terms of the transaction allow Cabral to use a portion of the proceeds for general working
capital purposes.
The parties have registered a pledge of shares in Cabral Gold B.C., and Cabral’s wholly-owned
subsidiary in Brazil. The transaction also grants Osisko certain additional rights on future royalty
and stream financings.
About Cabral Gold Inc.
The Company is a junior resource company engaged in the identification, exploration and
development of mineral properties, with a primary focus on gold properties located in Brazil.
The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region,
within the state of Pará in northern Brazil. Two main gold deposits have so far been defined at
the Cuiú Cuiú project which contains National Instrument 43-101 compliant Indicated resources
of 21.6Mt @ 0.87 g/t gold (604,000 oz) and Inferred resources of 19.8Mt @ 0.84 g/t gold
(534,500 oz) as per the 43-101 technical report dated October 12, 2022.
The Tapajós Gold Province is the site of the largest gold rush in Brazil’s history which according
to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil) produced an
estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the
largest area of placer workings in the Tapajós and produced an estimated 2Moz of placer gold
historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
“Alan Carter”
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as
defined by National Instrument 43-101, supervised the preparation of the technical information in this
news release.
Forward-looking Statements
This news release contains certain forward-looking information and forward-looking statements within the
meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the
words “will”, “expected” and similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such forward-looking statements.
Such forward-looking statements should not be unduly relied upon. The Company believes the
expectations reflected in those forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct.