Cerrado GOLD Tender Process Oversubscribed with TWO International Banks Selected to Act as Mandated Lead Arrangers FOR Export Credit Agency Supported Non-Recourse Project Financing FOR Its Monte Do Carmo Project IN Brazil and Its
October 18, 2023 www.cerradogold.com
CERRADO GOLD TENDER PROCESS OVERSUBSCRIBED WITH TWO INTERNATIONAL BANKS
SELECTED TO ACT AS MANDATED LEAD ARRANGERS FOR EXPORT CREDIT AGENCY SUPPORTED
NON-RECOURSE PROJECT FINANCING FOR ITS MONTE DO CARMO PROJECT IN BRAZIL AND ITS
MONT SORCIER PROJECT IN QUEBEC
• Two Banks selected to act separately as Mandated Lead Arrangers for Monte Do Carmo
Gold Project, Brazil and for the Mont Sorcier iron project, Quebec
• Cerrado expects to complete on-boarding and appointment process in coming weeks
(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 it has completed the tender process for its Export Credit
Agency (“ECA”) Supported Non -Recourse Project Financing, and expects to complete the on -
boarding and appointment process within the next few weeks. T he Company has chosen two
international banks to act as MLAs; one for the Monte Do Carmo Project (“MDC”) and another as
MLA for its Mont Sorcier Project (“MS”) in Quebec.
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 a number of global
Project Finance Banks to act as MLA for the Company’s ECA Supported Non -Recourse Project
Financing, supported by the UK Export Finance agency (“UKEF”) . As a result of this process the
company received several compelling bids and have evaluated the bids based on experience,
execution capabilities and financial terms. The institutions selected have extensive experience in
ECA financing, a longstanding rel ationship with UKEF and presented competitive terms for the
financing. The Company is currently undertaking a review of formal engagement letters with each
Bank and will announce the banks and their terms once signed.
As outlined previously, UKEF has expressed an interest to provide support for up to US$190 million
for the MDC Project and up to US$420 million for the MS Project, representing 70% of total capital
expenditure, interest payable during construction, political risk insurance premium as well as other
approved expenditures for each project.
The appointment of the MLAs is a significant milestone for the project financing requirements for
both the MDC and MS Projects. The next phase of the process will comprise a formal due diligence
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period before final binding offer s and documentation which are expected to be completed in 2Q
2024. This process is expected to start immediately in the case of MDC but will not be initiated at
MS for a period of 6 months, to align more closely with the completion of the planned feasibility
study.
Mark Brennan, CEO and Chairman , stated: “After a robust tender process, we are very pleased to
have been in a position to generate the support of two very strong Project Financing Institutions to
lead our Project Financings. We view the early commitment of the ECA’s and the MLAs as a
testament to the robust financial strength of the MDC and MS projects. With the completion of the
MDC Feasibility Study imminent, we are excited to bring the first of these two great projects towards
a fully funded project development decision during Q2/2024.”
Mark Brennan Mike McAllister
CEO and Chairman 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, Cer rado 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 furt her 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 e xpected 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 ele ctric 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
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.
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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 the estimated time to complete the feasibility study for
MDC and MS, the Company’s ability to successfully close a financing with UKEF and the selected MLA and to fully fund
construction of the projects in 2024
, as well the timing of the feasibility study at Monte Do Carmo. 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, unce rtainties, 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.