Cerrado GOLD Announces Reciept of Second Advance Under Secured Loan from Subsidiary of Hochschild Mining Plc
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May 6, 2024 www.cerradogold.com
CERRADO GOLD ANNOUNCES RECIEPT OF SECOND ADVANCE UNDER SECURED LOAN
FROM SUBSIDIARY OF HOCHSCHILD MINING PLC
• US$1 million received as second advance of Signing Loan under option agreement with
Hochschild Mining Plc (“Hochschild”).
• Total of US$8 million received with remaining US$7 million expected to be advanced in June.
• Funds received to-date addressed short-term capital needs in Argentina and will continue to
support deleveraging.
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces receipt of the second advance of US$1 million under the signing loan
entered into with Amarillo Mineração do Brasil Ltda. (“ Amarillo“) a wholly -owned subsidiary of
Hochschild Mining PLC (“ Hochschild“), whereby Cerrado has granted to Amarillo the option to
purchase a 100% interest in the Company’s Monte Do Carmo project located in the State of
Tocantins, Brazil (the “ Proposed Transaction “), for total consideration of US$60 million, as
announced on March 5, 2024.
A total of US$15 million is expected to be advanced by way of a 10% interest -bearing secured loan
(the “Signing Loan“), of which US$8 million has now been advanced. The balance of US$7 million is
expected to be advanced within two days following the mailing by Cerrado to its shareholders of a
notice of meeting and management information circular in connection with a meeting to approve
the Proposed Transaction to be held on June 27 , 2024 (the “ Cerrado Shareholder Approval “).
Cerrado expects to mail the manag ement information circular not later than June 5, 2024 . Upon
obtaining Cerrado Shareholder Approval, the Signing Loan, together with all accrued and unpaid
interest thereon and expenses relating thereto, shall be deemed to be repaid in full by Cerrado by
the concurrent set off of an amount equal to the Signing Loan due by Amarillo as part of the Purchase
Price. If Cerrado fails to secure the Cerrado Shareholder Approval on or before June 30, 2024, the
Signing Loan will mature on September 30, 2024.
Mark Brennan, CEO and Chairman commented, "The second advance under the Signing Loan
demonstrates the good progress that Cerrado and Hochschild are making to complete the Proposed
Transaction, and this cash infusion, along with the strong production rates over the last two months
and strong gold prices will further assist in our continued debt reduction activities at MDN.”
The Proposed Transaction has been unanimously approved by the Board of Directors of Cerrado.
The Company's Board of Directors, senior officers and principal shareholder, collectively owning
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approximately 22.83% of the outstanding common shares of the Company, have entered into voting
and support agreements to support the Proposed Transaction.
Mark Brennan
CEO and Co Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
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, Argentin a, and the highly prospective
Monte Do 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 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 grad e 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.
Disclaimer
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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
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.
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Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cerrado. In making the forward -looking statements
contained in this press release, Cerrado has made certain assumptions, including, but not limited to
expectations with respect to the likelihood of closing, timing and receipt of funds under the Proposed
Transaction. 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.