Cabral Gold Announces Closing of US$45.1 Million Gold Loan and Draw Down to Fully Fund Heap Leach Starter Operation

Executive Summary

• Cabral Gold Inc. completed a US $45.1 million gold‑loan transaction with Precious Metals Yield Fund, receiving the full principal amount (345 kg of gold).
• The proceeds fully fund the Cuiú Cuiú Heap Leach starter project’s estimated US $37.7 million capex and accelerate construction toward a first gold pour in Q4 2026.
• Simultaneously, Cabral issued 10 million non‑transferable common share purchase warrants (exercise price C$0.71, 24‑month term) to the lender; the loan and warrant issuance are conditionally approved by the TSX Venture Exchange.

Key Details

• Loan amount & security: US $45,121,732 principal (equivalent to 345 kg of gold); secured by corporate guarantees and first‑ranking liens from Cabral Gold Inc., its subsidiary Magellan Minerais Prospecção Geológica Ltda., and Cabral Gold B.C. Inc.
• Warrant terms: 10 million non‑transferable common share purchase warrants; each warrant exercisable for one common share at C$0.71 (≈50 % premium to the 5‑day VWAP ending 15 Oct 2025); 24‑month exercise period; hold period of 4 months + 1 day.
• Use of proceeds: Entire loan amount allocated to construction of the Cuiú Cuiú Heap Leach gold starter project (estimated capex US $37.7 M) and to fund ongoing exploration drilling during construction.
• Project status & financing impact: Treasury increased to ≈C$66 M; early works program accelerated to full‑construction mode; 141 employees/contractors now on site (excluding exploration staff).
• Project economics (per Updated Pre‑Feasibility Study, July 2025):
• 1 Mtpa heap‑leach plant, 6.2‑year mine life.
• All‑in‑sustaining operating cost: US $1,210/oz Au.
• Capital cost: US $37.7 M (≈US $6 M already spent on early works).
• IRR: 78 %; NPV5: US $74 M; Payback period: 10 months at $2,500/oz Au.
• Regulatory approval: Loan and warrant issuance have been conditionally approved by the TSX Venture Exchange; final TSXV approval pending.
• Resource summary (NI 43‑101 compliant):
• Indicated resources: 12.29 Mt @ 1.14 g/t Au (450,200 oz) in fresh basement material; 13.56 Mt @ 0.50 g/t Au (216,182 oz) in oxide material.
• Inferred resources: 13.63 Mt @ 1.04 g/t Au (455,100 oz) in fresh basement; 6.4 Mt @ 0.34 g/t Au (70,569 oz) in oxide material.

Notable Quotes

• Alan Carter, President & CEO: “The Gold Loan provides capital at a very attractive cost of capital, especially in relation to the forecast returns of the Project… It also locks in the current gold price for debt service while retaining upside exposure on our reserves.”