Cerrado Gold Announces 100% Repurchase of Stream Agreements Over Its Minera Don Nicolas and Lagoa Salgada Projects Held by Sprott

Cerrado Gold Inc. (CERT) has fully repurchased the stream agreements on its producing Minera Don Nicolas (MDN) mine in Argentina and the Lagoa Salgada project in Portugal from Sprott Private Resource Streaming and Royalty entities. The total consideration for the transaction is approximately US$31.34 million.

The upfront portion of US$11.34 million is satisfied with US$8 million in cash and 3,000,000 common shares issued at C$1.5719, representing a 3% discount to the 10-day VWAP. The remaining US$20 million is deferred via non-interest-bearing promissory notes: * US$8 million due by October 6, 2026 * US$12 million due by January 4, 2027

These notes are secured by a general security agreement over all assets. The transaction eliminates the stream obligations and all related security. Management states that this move maximizes shareholder exposure to commodity price upside, reduces balance-sheet leverage, and improves future cash flows. The company also disclosed that it is considering creating its own streaming vehicle.

Cerrado Gold Inc. (CERT) announced stream repurchases that were not previously telegraphed in any release. Eliminating the stream lifts a structural drag on MDN’s cash flow and removes a contingent liability on Lagoa Salgada. The cost is affordable at US$31 million total, relative to the improved cash-flow profile and the elimination of future stream payments that would have eroded margins at record gold prices. Sprott’s willingness to take paper, including equity and deferred notes, suggests a long-term positive view on the assets.

The positive impact is partially tempered by the near-term cash outflow and the addition of US$20 million in short-term secured obligations at a time when the company already has a working-capital deficit of US$37.6 million. Nonetheless, Q1 2026 results showed strong operating cash flow of US$17.2 million and a cash balance of US$31.4 million, suggesting the deferred payments are manageable if operations continue at current levels. The decision to explore its own streaming vehicle is a vague side note and merits close watching for potential corporate distraction or a fee-generating structure.

Cerrado Gold Inc. (CERT) is a gold producer operating the Minera Don Nicolas (MDN) mine in Santa Cruz, Argentina, which utilizes open-pit heap-leach and underground carbon-in-leach methods. The company also holds an 80% interest in the Lagoa Salgada polymetallic project in Portugal and the Mont Sorcier iron-ore project in Quebec, Canada. While diversified across commodities and jurisdictions, Cerrado Gold remains dependent on MDN for cash flow. Management is led by CEO Mark Brennan, supported by a team with experience in mining and finance. Recent filings indicate the company holds approximately US$31 million in cash and carries a working-capital deficit.