Minera Don Nicolas Receives Initial US$4 Million Option Payment from Cerro Vanguardia Sa FOR the Sale of Its Michelle Exploration Properties FOR Total Consideration of US$14 Million
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December 30, 2024 www.cerradogold.com
MINERA DON NICOLAS RECEIVES INITIAL US$4 MILLION OPTION PAYMENT FROM CERRO
VANGUARDIA SA FOR THE SALE OF ITS MICHELLE EXPLORATION PROPERTIES FOR TOTAL
CONSIDERATION OF US$14 MILLION
• Initial US$4 Million Peso Equivalent Option Payment received which further strengthens
balance sheet
• Remaining consideration of US$10 Million Pesos equivalent payable on exercise; within
3 years
• Company well-positioned to drive future growth via its existing operating Minera Don
Nicolas gold mine in Argentina and its Mont Sorcier development project in Quebec
• Company issues loan to Ascendant Resources Inc
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or the
“Company”) announces that its wholly owned subsidiary Minera Don Nicolas SA (“ MDN”) has
received the option payment of US$4 million equivalent in Argentina pesos at the CCL Buyers rate
pursuant to the previously announced option agreement with Cerro Vanguardia S.A. (“CVSA”) a
wholly-owned subsidiary of AngloGold Ashanti Holdings Plc . MDN has granted to CVSA the option
to purchase a 100% interest in certain exploration properties located in the south region of its
Minera Don Nicolas Project in Santa Cruz, Argentina.
Mark Brennan, CEO and Chairman commented: “The option of these non-core properties
immediately improves the balance sheet and short-term capital position at MDN allowing MDN to
focus on its core properties. In addition to our current strong operating cashflows at MDN and capital
proceeds from previous asset sales, we are well positioned to pursue growth programs at our MDN
Mine and our Mont Sorcier high grade iron project, as well as allowing us to consider additional
opportunities to grow the Company in the near term.”
The Company also announces that it has issued a loan (“Loan”) to Ascendant Resources Inc.
(“Ascendant”) in the principal amount of US$275,000. The Loan bears interest at a rate of 10.0% per
annum, compounded monthly and matures on demand, on not less than 366 days notice.
Ascendant is a Toronto-based mining company focused on the exploration and development of the
highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal.
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Additional information on Ascendant can be found on its website at www.ascendantresources.com.
The Company notes that while there is a commonality of directors and officers between Cerrado
and Ascendant, the companies are not "related parties" as defined in Multilateral Instrument 61 -
101 – Protection of Minority Shareholders in Special Transactions ("MI 61-101") and accordingly the
Loan is not considered a "related party transaction" as defined in MI 61-101.
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. In Canada, Cerrado Gold is
developing its 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
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
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, pr ojections, 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”,
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“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 Cer rado, that CVSA will exercise the option and pay MDN
the consideration upon exercise, the value of Argentina pesos at the CCL Buyers rate, and the
business, prospects and potential of Ascendant . In making the forward - looking statements
contained in this press release, Cerrado has made certain assumptions, including, but not limited to
the satisfactory completion of due diligence by Amarillo and the exercise of the Option by Amarillo,
the satisfaction of all conditions to closing of the Proposed Transaction, including the receipt of all
required approvals (including regulatory and shareholder approval), cash flow generated from MDN
and changes in economic and monetary policies and regulations in jurisdictions in which Cerrado and
its subsidiaries operate. 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 discl aims 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.