Cerrado GOLD Provides an Update ON Fiscal Policy Changes IN Argentina Including Removal of Currency Controls ON April 14TH
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April 14, 2025 www.cerradogold.com
CERRADO GOLD PROVIDES AN UPDATE ON FISCAL POLICY CHANGES IN ARGENTINA INCLUDING
REMOVAL OF CURRENCY CONTROLS ON APRIL 14TH
• Argentina set to remove Capital Controls or “el cepo” as of Monday, April 14
• International Monetary Fund (“IMF”) to provide new $20 Billion in funding
• World Bank to Provide an additional support package of $12 Billion and the Inter-
American Development Bank will provide a further $10 Billion over three years
• Currency set to initially be allowed to float in the range of 1,000 -1,400 Pesos to the
Dollar
• New Policy will simplify capital flows for Cerrado’s MDN mine and allow for
dividends out of the country
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) is pleased to provide an update on recent fiscal policy changes that are underway in
Argentina which should ease the overall flow of capital into and out of Argentina. It should be noted
that not all the details of the new policy are fully available at this time.
On Friday, April 11 the IMF approved a new $20 Billion loan program for Argentina with $12 billion
set to be available to the central bank this week. This new agreement has been sought by President
Milei’s government since taking office to reopen the country to foreign investments. Access to the
IMF funds is set to bolster the Central Bank’s foreign reserves as the country looks to defend against
inflation as it aims to remove all Capital Controls in the near future. As part of the plan to remove
controls, the Central Bank will eliminate most exchange restrictions on flows, unifying all current
account flows, debt payments, foreign investment, and the accumulation of assets by individuals
into a single foreign exchange market. As the initial step the government will remove this week the
crawling peg that has for years artificially limited the peso’s weakening. Instead, the Argentine
currency will be allowed to trade freely within an initial range of 1,000 pesos to 1,400 pesos per
dollar. On Friday, the peso traded at 1,097 to the dollar at the official rate, and at 1,375 at the
unofficial "blue dollar" rate. The band will expand 1% each month.
As part of this phase of removing all Capital Control o n Friday , the government announced
companies will be able to repatriate profits out of the country as of 2025 , subject to some
restrictions and the use of the differential exchange rate s or “ dollar blend” used by exporters will
be eliminated and the deadlines for the payment of foreign trade operations are to be relaxed. This
is expect ed to attract new investment into Argentina. Funds from prior to 2025 will need to
exchange the debt for dollar-denominated security bonds. Individual Argentines will also be able to
legally exchange pesos for dollars without a US$200-monthly limit.
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Along with the opening of the foreign exchange market, modifications were also introduced for
foreign trade operators. From April 14, importing companies will be able to pay immediately for
goods arriving in the country, eliminating the need to wait weeks or months as was the case with
the previous system. This flexibility will be applied without distinction of products. The new scheme
also impacts the payment of services acquired abroad, such as streaming platforms, online training
or consultancies. Accord ing to the provisions, if the service provider does not have a corporate
relationship with the buyer, payment may be made from the first day of use.
Mark Brennan, CEO and Chairman commented, "After years of significant inflation and restrictions
on capital flows, the removal of currency controls is expected to significantly enhance our ability to
operate in Argentina more effectively. In addition , as the success of this new policy unfolds , we
expect the attractiveness of Argentina for resource investment will grow given the significant
resource endowment in the country.”
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. 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 -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
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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, production forecasts and estimated ASIC for 2025
and beyond, the potential for additional crushing capacity that may be added and the performance
of the heap leach pad, the possibility of commencing underground mining, the potential to produce
iron concentrate grading in excess of 67% at Mont Sorcier, further deleveraging during 2025, receipt
of the deferred closing payment of US$15 million in connection with the asset sale and the likelihood
of the Michelle option being exercised and the related option payment being received . In making
the forward - looking statements contained in this press release, Cerrado has made certain
assumptions. 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.
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