Cerrado GOLD Appoints the Toronto-Dominion Bank to Be the Mandated Lead Arranger FOR Export Credit Agency Supported Project Financing at Its Mont Sorcier Iron and Vanadium Project IN Québec
November 21, 2023 www.cerradogold.com
CERRADO GOLD APPOINTS THE TORONTO-DOMINION BANK TO BE THE MANDATED LEAD
ARRANGER FOR EXPORT CREDIT AGENCY SUPPORTED PROJECT FINANCING AT ITS MONT
SORCIER IRON AND VANADIUM PROJECT IN QUÉBEC
• Indicative Terms for up to US$598m in a potential UKEF (UK Export Credit Agency)
Supported Project Financing
• Company in final stages of appointing the Mandated Lead Arranger for Monte Do Carmo,
Brazil
(All numbers reported in US dollars)
TORONTO, ONTARIO - Cerrado Gold Inc. (TSX.V: CERT) (OTCQX: CRDOF ) (“Cerrado” or the
“Company”) is pleased to announce that further to the October 18, 2023 announcement in relation
to potential Export Credit Agency (“ECA”) Supported Project Financing of up to $598 million , the
Company has appointed the Toronto-Dominion Bank (“TD”) as the MLA for its Mont Sorcier Iron and
Vanadium Project located in Québec. Cerrado is also in the final stages of finalizing the appointment
of the MLA for its Monte Do Carmo project in Brazil.
As announced on September 5 th, the Company together with its advisors, SD Capital Advisory Ltd
and GKB Ventures Ltd ("S&G") , initiated a tender process to solicit interest from global Project
Finance Banks to act as the MLA for the Company’s Brazil and Quebec projects. As a result of this
competitive process, the company received compelling bids. Together with the Company’s advisors,
the bids were evaluated based on ECA Project Finance Experience , execution capabilities and
ultimately the financial terms for the Project Financing . TD has extensive experience in ECA
financing, a longstanding relationship with UKEF, and presented competitive and compelling terms
for the project financing.
The UKEF backed facility is expected to be for up to US$598 million on a non-recourse project
financing basis for a total tenor of 11 years. The funding will be to cover 70% of the expected project
capital expenditures for the Mont Sorcier project.
As is common for ECA supported Project Financing, UKEF provides political and commercial
guarantees to project lenders, thereby lowering the overall project risk to the lender and resulting
in lower costs of capital. This reduces the cost of debt to Cerrado Gold (and its 100% owned company
Voyager Metals Inc) whilst at the same time extending tenors and creating debt capacity not
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normally available in the commercial bank market. To secure such support , project developers
commit to a pre agreed level of procurement from UK based organizations for goods , services and
materials. UKEF’s mandate is to promote and support exports from British companies in the global
market.
The appointment of TD is on an exclusive basis and set s out the indicative terms upon which the
proposed ECA financing is expected to be based. For the avoidance of doubt, the terms are purely
indicative and do not constitute an offer of finance or a legally binding commitment of any kind to
provide finance. The provision of any binding offer is subject to, among other things: credit and
other internal approvals; E&S approvals; satisfactory due diligence and documentation; satisfaction
of KYC requirements and other terms customary for this type of transaction.
While the conclusion of project financing remains subject to the completion of a bankable feasibility
study, an environmental impact assessment , the granting of construction permits, amongst other
requirements, the appointment of the MLA is a significant milestone for the project financing of the
Mont Sorcier project. At the Mont Sorcier project , work continues to advance the feasibility study
and the environmental impact assessment. The feasibility study is targeted for completion in H2
2024 after which the next phase of the process will commence comprising of a formal due diligence
period before a final binding offer and documentation.
Mark Brennan, CEO and Chairman , stated: “We are very pleased to have the support of TD as the
MLA to lead our Project Financing in partnership with UKEF as we progress with the development of
Mont Sorcier. We believe the strong interest in our project is indicative of the robust nature of the
Mont Sorcier project and we look forward to working with TD, UKEF and other stakeholders to deliver
the Mont Sorcier project”.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or
the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million
customers in four key businesses operating in a number of locations in financial centres around the
globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance
Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD
Wealth (U.S.), and an inv estment in The Charles Schwab Corporation; Wealth Management and
Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale
Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online
financial services firms, with more than 16 million active online and mobile customers. TD had $1.9
trillion in assets on July 31, 2023. The Toronto -Dominion Bank trades under the symbol "TD" on
the Toronto and New York Stock Exchanges.
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
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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 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 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.
Mark Brennan Mike McAllister
CEO and Chairman 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 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 Cerrado. In making the forward- looking statements contained in this press release, Cerrado
has made certain assumptions, including, but not limited to completing the feasibility study and securing UKEF’s support
for the Mont Sorcier Project and the Monte Do Carmo Project, raising sufficient funds to cover the balance of project
capital expenditures not covered by project financing, other conditions of closing a transaction with UKEF and TD
including but not limited to those described in this news release and appointing an MLA for the Monte Do Carmo 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
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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. Forward-looking information is subject to a variety of risks and uncertainties, which could
cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation,
the risks described under the heading "Risks and Uncertainties" in the Company's most recent Management's Discussion
and Analysis and other risks identified in the Company's filings with Canadian securities regulators, which filings are
available on SEDAR at www.sedar.com. The risk factors referred to above are not an exhaustive list of the factors that may
affect any of the Company's forward -looking information. The Company's statements containing forward -looking
information are based on the beliefs, expectations and opinions of management on the date the statements are made, and
the Company does not assume any obligation to update such forward -looking information if circumstances or
management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons
set forth above, one should not place undue reliance on forward-looking information.