Cerrado Closes Transaction with Hochschild Subsidiary FOR Sale of Monte Do Carmo GOLD Project
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November 6, 2024 www.cerradogold.com
CERRADO CLOSES TRANSACTION WITH HOCHSCHILD SUBSIDIARY
FOR SALE OF MONTE DO CARMO GOLD PROJECT
• Combined closing cash payments of US$30 million received
• Additional US$15 million future payments due to Cerrado
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces that it has completed the sale of its 100% interest in the Company’s Monte
Do Carmo project located in the State of Tocantins, Brazil to Amarillo Mineração do Brasil Ltda.
(“Amarillo”), a wholly -owned subsidiary of Hochschild Mining PLC (“Hochschild”), in connection
with the exercise of its option (the “Option”) pursuant to an option agreement entered into on
March 5, 2024 (the “Option Agreement”)(the “Transaction”). In connection with the closing of the
Transaction, Cerrado received closing cash payments totaling US$30 million from Amarillo, in
addition to the US$15 million that was previously received in connection with granting the Option ,
for total consideration of US$60 million (approximately C$83 million).
Pursuant to the terms of the Option Agreement, Amarillo shall make two further payments to
Cerrado, totaling US$15 million in aggregate, as follows:
• US$10 million payable within 14 days of the second anniversary of the date of the Cerrado
shareholder approval (being June 27, 2026); and
• US$5 million within 14 days of the earlier of (i) the commencement of commercial
production from the Project, and (ii) March 31, 2027.
The two further payments due from Amarillo are guaranteed by Hochschild pursuant to the Option
Agreement.
Additional details in respect of the Transaction can be found in the Company’s press releases dated
October 30, 2024 , and March 5, 2024 , and the management information circular of the Company
dated May 29, 2024, all of which can be found on the Company’s issuer profile on SEDAR+ at
www.sedarplus.ca.
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About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company listed on the London Stock
Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX Best Market in the U.S. (HCHDF), with
a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has
over fifty years' experience in the mining of precious metal epithermal vein deposits and operates
two underground epithermal vein mines: Inmaculada, located in southern Peru; and San Jose in
southern Argentina, and an open pit gold mine, Mara Rosa, located in the state of Goiás, Bra zil.
Hochschild also has numerous long-term projects throughout the Americas.
About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused
on projects in the Americas. The Company is the 100% owner of both the producing Minera Don
Nicolás and Las Calandrias mine in Santa Cruz province, Argentina a nd is the 100% owner of the
Mont Sorcier Iron Ore Project in Quebec, Canada.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through
continued operational optimization and is growing production through its operations at the Las
Calandrias Heap Leach project. An extensive campaign of exploration i s ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron Ore and Vanadium project, which
has the potential to produce a premium iron ore concentrate over a long mine life at low operating
costs and low capital intensity. Furthermore, its high grade and high purity product facilitates the
migration of steel producers from blast furnaces to electric arc furnaces , contributing to the
decarbonization of the industry and the achievement of SDG goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Mark Brennan
CEO and Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
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 news release. Any statement
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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 business and operations of Cer rado, receipt by Cerrado of the two further cash
payments. In making the forward - looking statements contained in this press release, Cerrado has
made certain assumptions, including, but not limited to receipt of the additional US$15 million in
cash payments from Amarillo , cash flow generated from MDN and changes in economic and
monetary policies and regulations in jurisdictions in which Cerrado and its subsidiaries operate .
Although C errado 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.