Cerrado Gold Acquires the Past-Producing Manantial Espejo Mine in Santa Cruz, Argentina, from Pan American Silver

Cerrado Gold Inc. (CERT) has acquired 100% of Minera Tritón Argentina S.A. (MTA) and the Manantial Espejo mine from Pan American Silver Corp. for a total consideration of US$20 million. The asset is a past-producing mine featuring existing infrastructure, including a 2,500 tpd mill capacity, a tailings pond, and historical open pits and underground workings. Historical production totaled approximately 1.4 million Gold Equivalent Ounces (GEOs) from 2008–2022, with mining ceasing at the end of 2022 while mineralized material remained in place.

Cerrado plans a phased redevelopment targeting a 2027 restart, initially commissioning at approximately 1,000 tpd throughput. The transaction structure requires a US$10 million payment at closing, followed by two deferred payments of US$5 million payable on the first and second anniversaries. A 1.0% NSR royalty is granted to Pan American to settle intercompany indebtedness. Additionally, a US$13.8 million closure guarantee will be satisfied via an environmental insurance policy or letter of credit, preserving working capital.

No NI 43-101 Mineral Resource or Reserve has been estimated. Historical drill data provided by Pan American has not been independently verified by Cerrado's Qualified Person. A 40,000-meter exploration drill program is planned for 2027 to support an initial resource estimate.

Cerrado Gold Inc. (CERT) has acquired Manantial Espejo, a move that consolidates its Santa Cruz portfolio and aligns with the company’s strategy to expand around Minera Don Nicolas (MDN). The financial structure is conservative, requiring only $10 million upfront with the remainder deferred. A closure guarantee is ring-fenced via insurance to avoid immediate strain on working capital.

The acquisition does not immediately alter Cerrado’s production profile or cash flow generation, as operations are targeted to restart in 2027. The deal introduces significant exploration and technical risk due to the lack of an independent NI 43-101 resource and reliance on unverified historical drill data.

Cerrado Gold Inc. (CERT) operates Minera Don Nicolas (MDN), a 100% owned producing gold-silver mine located in Santa Cruz, Argentina, which utilizes heap leach and CIL processing. The company also holds an 80% interest in Lagoa Salgada, a polymetallic VMS project in Portugal that is currently in the EIA permitting stage. In Canada, Cerrado Gold owns the Mont Sorcier magnetite iron ore and vanadium project in Quebec, which is advancing through BFS optimization.

To support regional consolidation, the company has acquired Falcon Properties and Las Calandrias II, adjacent exploration concessions in Argentina. Additionally, Cerrado Gold has acquired the Manantial Espejo past-producing mine in Argentina, targeting a restart in 2027.