Cerrado Gold Closes $10 Million Strategic Private Placement with Eric Sprott

Cerrado Gold Inc. (CERT) has closed its previously announced non-brokered private placement with an entity owned and controlled by Eric Sprott. The transaction generated gross proceeds of C$10 million through the issuance of 4,000,000 units priced at C$2.50 per unit. Each unit comprises one common share and one-half of one warrant, resulting in the issuance of 2,000,000 whole warrants. These warrants carry a C$3.35 exercise price and a 24-month term from the date of closing.

The net proceeds from the financing are designated for working capital and general corporate purposes, with no specific project-related use disclosed. The closing is subject to final acceptance by the TSX Venture Exchange, and the securities are subject to a statutory four-month-and-one-day hold period. This transaction represents the closing of the financing first announced on August 31, 2026, with terms remaining unchanged from that initial announcement. Additionally, the company corrected an earlier investor-services disclosure to identify the provider as Investor Events Inc., rather than ENGAGE 360, while all other terms remain unchanged.

Cerrado Gold Inc. (CERT) announced the settlement of a C$10 million placement, finalizing a deal initially disclosed on August 31, 2026. The financing represents approximately 2.8% of the company’s C$352.6 million market capitalization at the placement price. Shares were priced at C$2.50, essentially in line with the previous closing price of C$2.49.

The transaction includes warrants with a strike price of C$3.35, which sits approximately 34.5% above the pre-release closing price, meaning there is no immediate in-the-money warrant overhang. Proceeds from the placement will be used for working capital and general corporate purposes, a structure consistent with post-stream-buyback liquidity support rather than a transformative capital injection.

While the involvement of Sprott serves as a positive signaling item, the release does not confirm a first-time equity stake, board representation, off-take agreement, or other strategic terms beyond the financing itself. Because the market already had the August 31 announcement to digest, this closing serves as confirmation of the deal rather than introducing new market-moving information.

Cerrado Gold Inc. (CERT) is a Toronto-based gold producer, development, and exploration company. The firm is the 100% owner of the producing Minera Don Nicolas and Las Calandrias mine in Santa Cruz, Argentina, as well as the Mont Sorcier iron project near Chibougamau, Quebec. Additionally, Cerrado holds an 80% interest in the Lagoa Salgada VMS project in Portugal through Redcorp.

Minera Don Nicolas (MDN) serves as the company’s sole operating cash-flow asset, utilizing heap leach and CIL processing. In the first half of 2026, production reached 28,257 GEO. Year-to-date performance remains consistent with the company’s annual guidance range of 50,000–60,000 GEO.