Cerrado GOLD Announces Potential UK Export Credit Agency Support FOR Project Finance at Its Monte Do Carmo and Mont Sorcier Projects
July 5, 2023 www.cerradogold.com
CERRADO GOLD ANNOUNCES POTENTIAL UK EXPORT CREDIT AGENCY SUPPORT FOR
PROJECT FINANCE AT ITS MONTE DO CARMO AND MONT SORCIER PROJECTS
• UKEF, the UK Export Credit Agency, selected from group of 4 compliant Expressions of Interest
• Potentially up to US$ 610 million in Export Credit Agency (“ECA”) support via long term ECA Project
Finance to cover up to 70% of pre-production costs plus additional support to cover Interest During
Construction and Insurance Premium Costs
• UKEF’s Expression of Interest will encourage a UK -led sourcing strategy while allowing flexibility for
sourcing from other countries. Support available subject to standard project finance terms and
successful due diligence
• Process to appoint Mandated Lead Arranger(s) to commence shortly
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX:CRDOF] ("Cerrado" or the "Company”) is pleased
to announce that it has received and accepted Expressions of Interest (“EOIs”) from UK Export Finance (“UKEF”) to
support potential export credit facilities for the Company’s 100% owned the Monte Do Carmo Project in Tocantins
State, Brazil (“MDC”) and the Mont Sorcier Iron Ore and Vanadium Project in Quebec, Canada (“MS”) held by its
wholly owned subsidiary Voyager Metals Inc. The EOIs provide support for up to US$190 million for the MDC Project
and up to $420 million for the MS Project; representing 70% of total capital expenditure, interest payable during
construction, the political risk insurance premium as well as other approved expenditures for each project.
UKEF is a department of the UK Government and is the UK’s official Export Credit Agency (“ECA”). UKEF operates
under an Act of Parliament to support UK exports, predominately through the provision of 100% unc onditional
guarantees backed by the UK Government.
UKEF’s engagement with the opportunity is at an early stage. UKEF’s EOI is not a legally binding commitment and is
subject to a series of standard project finance terms and due diligence, including, among others, suitable structured
offtake contracts, the successful completion of the Definitive Feasibility Study (DFS), and an Environmental and Social
Impact Assessment (ESIA) to Equator Principles. The EOI provides an indication of currently available country limits,
an indication of the attractiveness of the project, and it covers, in principle, the level of financial support , their
flexibility and desired conditions.
UKEF’s EOI is in line with the OECD Arrangements for Officially Supporte d Export Credits and stipulate s minimum
UK content requirements whilst enabling equipment to be sourced locally and from other countries.
As previously announced on April 17, 2023 the Company appointed SD Capital Advisory Ltd and GKB Ventures Ltd
(“S&G”) to solict interest for Export Credit Agency backed Project Financing. As a result of this process the Company
received 4 expressions of interest from ECAs around the world. The Company also received an expression of interest
from an additional ECA on an untied basis which may be used to complement UKEF support. The company is very
excited with the level of support and interest from the ECA market which highlights the potential for success of both
of these projects.
The company has selected UKEF based on numerous factors related to the terms of the Expression of Interest and
unique aspects of the capital spend at both MDC and MS.
Together with S&G, the company will now be soliciting interest from Project Finance Banks to act as Mandated Lead
Arranger (“MLA”) for the transactions. The Company expects to appoint a n MLA by the end of July. Once an MLA
has been appointed, detailed due diligence will commence with the aim of receiving final terms for the ECA backed
Project Financing at MDC towards the end of the year.
Mark Brennan, CEO and Chairman commented “We are very pleased to partner with UKEF to bring both our Monte
Do Carmo and Mont Sorcier projects into development. The support of the UK Government and UKEF is a testament
to the robust and attractive nature of both the MDC and MS Projects and we look forward to working with UKEF and
the future appointed MLA to complete project financing in the coming months.”
He added, ”We view ECA supported limited recourse Project Finance with each project undertaken on a ring-fenced,
stand-alone basis, as an attractive form of long term Debt capital.
In addition, S&G’s mandate has now been amended to include the structuring and arranging of ECA backed Project
Financing for the MS Project.
About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused on gold projects
in South America. The Company is the 100% owner of both the producing Minera Don Nicolás and Las Calandrias
mine in Santa Cruz province, Argentina, and the highly prospective Monte D o Carmo development project, located
in Tocantins State, Brazil. In Canada, Cerrado Gold is developing it’s 100% owned Mont Sorcier Iron Ore and
Vanadium project located outside of Chibougamou, Quebec.
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 is ongoing to further unlock potential resources in our highly prospective land package in
the heart of the Deseado Masiff.
At Brazil, Cerrado is rapidly advancing the Serra Alta deposit at its Monte Do Carmo Project, through Feasibility and
into production. Serra Alta is expected to be a high -margin and high -return project with significant exploration
potential on an extensive and highly prospective 82,542 hectare land package.
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 decarbonisation of the industry and the achievement of SDG goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
For further information, contact:
Mark Brennan Mike McAllister
CEO and Chairman Vice President, Investor Releations
Tel: +1-647-796-0023 Tel: +1-647-805-5662
[email protected] [email protected]
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Forward-looking statements contained in this press release include, without limitation, statements regarding the
business and operations of Cer rado. In making the forward - looking statements contained in this press release,
Cerrado has made certain assumptions, including, but not limited to the indicative nature of the support from UKEF
and the Companies ability to secure an MLA and ultimately recievce terms for a Project Financing. 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
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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 assu mes 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.