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March 2, 2023 www.cerradogold.com
CERRADO GOLD ENTERS INTO AGREEMENT FOR US$10 MILLION EQUALIZATION
STREAM FINANCING AT ITS MINERA DON NICOLÁS MINE IN ARGENTINA
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V: CERT][OTCQX:CRDOF] (“Cerrado” or the “Company”) is
pleased to announce that it has entered into an amended and restated metals purchase and sale
agreement (the “Agreement”) with Sprott Private Resource Streaming and Royalty (B) Corp. (“Sprott”), to
include the concessions acquired by the Comp any in its acquisition of Minera Mariana Argentina S.A. in
2020 (see the Company’s news release dated October 28, 2020), broadening the stream area including,
most notably, production from the Las Calandrias heap leach project where production is expected to
commence in Q2/23. The Agreement also provides Cerrado with an additional US$10 million in funding
in the form of an additional deposit (the “Deposit”) against future production. Substantially all other terms
of the Agreement are materially unchanged.
Please refer to Table 1 below for a summary of certain key commercial terms which were amended under
the Agreement as compared to the original stream agreement entered into between the parties in 2020
(the “Original Agreement”).
Payment of the Deposit is expected to occur on or about March 7, 2023 and is subject to the satisfaction
of certain conditions, including there being no material adverse effect since the date of the Agreement
and to the parties receiving any required regulatory approvals.
Mark Brennan, CEO & Chairman of the Company, commented, “We are very pleased to be expanding our
partnership with our friends at Sprott Streaming and Royalty. We view this additional investment as a strong
indication of support for our ongoing development plans to increase the gold production capacity at MDN from
50,000 ozs to approximately 90,000 ozs by mid 2024 with the ongoing development of two heap leaching
facilities. Further, the additional inflow of funds is expected to allow the Company to capitalize on the success
at Las Calandrias and provide additional non-dilutive financing to fund our development plans”.
Mike Harrison, Managing Partner of Sprott, commented, “Our continued support of Cerrado Gold reflects
the success achieved at MDN to date and our confidence in the quality of the Las Calandrias heap leach project
to expand the production at MDN. This funding will provide increased exposure to a well performing asset in a
highly prospective region.”
Table 1. Summary of Certain Amended Terms
Term Original Agreement Agreement Delta
Principal Amount US$15,000,000 US$25,000,000 +US$10,000,000
Step-Down Trigger (Threshold Amount)
21,250 Gold
Equivelent Ounces
(“GEO”s)
29,500 GEO +8,250 GEO
A copy of the Agreement will be filed on the Company’s SEDAR profile at www.sedar.com.
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In addition, Cerrado announces that Mr. Stephen Shefsky has resigned as a Director and Co-Chairman of
the Company in order to focus his time on other business opportunities.
Mark Brennan, CEO & Chairman of the Company, commented, “We would like to thank Stephen for his years
of service and especially wish to acknowledge his role in the foundation of the Company. On behalf of the Board
and entire Management team, we wish him well with his furture endeavours”.
Stephen Shefsky commented, “It has been an honour and privilege to work with such a talented and
dedicated team and I thank Mark and the team for their exemplary stewardship of the Company. Although I
am now focusing other opportunities, I will continue to follow the Cerrado story closely and I look forw ard to
the continued success of the Company.”
Mark Brennan David Ball
CEO and Co-Chairman Vice President, Corporate Development
Tel: +1-647-796-0023 Tel: +1-647-796-0068
[email protected] [email protected]
About Cerrado
Cerrado is a Toronto based gold production, development and exploration company focused on gold
projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás
mine in Santa Cruz province, Argentina, and the highly prospect ive development project, Monte Do
Carmo located in Tocantins State, Brazil.
At Minera Don Nicolas, Cerrado is maximising asset value through further operation optimization and
continued production growth. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and
production. The Serra Alta deposit Indicated Resources of 541 kozs of contained gold and Inferred
Resources of 780 kozs of contained gold. The Preliminary Economic Assessment demonstrates robust
economics as well as the potential to be one of the industry’s lowest cost producers. Cerrado also holds
an extensive and highly prospective 82,542 ha land package at Monte Do Carmo.
For more information about Cerrado please visit the Company’s website at: www.cerradogold.com.
Disclaimer
This press release contains state ments 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 press 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, with out limitation, statements regarding
the expected date of funding of the Deposit, the expected production from the Las Calandrias heap leach
project, development plans to increase gold production, the use by Cerrado of the Deposit and the filing of the
Agreement on SEDAR. In making the forward -looking statements contained in this press release, Cerrado has
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made certain assumptions, including, but not limited to [ the timing of production, rates of production,
operating costs and capital costs of the Las Calandrias 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 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.