Cerrado Gold receives $8.75M (U.S.) from Hochschild

Executive Summary

• Cerrado Gold Inc. received a US$8.75 million prepayment from Amarillo Mineração do Brasil Ltda., fulfilling the first $10 million installment of the Monte Do Carmo gold project sale agreement.
• The payment strengthens Cerrado’s balance sheet and provides liquidity for ongoing exploration, development studies, and the Mont Sorcier iron project.
• Two further payments remain under the option agreement: US$10 million due 14 days after the second anniversary of shareholder approval (June 27 2024) and US$5 million payable upon commercial production start or by March 31 2027, whichever occurs first.

Key Details

• Payment Received: US$8.75 million prepayment from Amarillo Mineração do Brasil Ltda., a wholly‑owned subsidiary of Hochschild Mining PLC.
• Underlying Transaction: Sale of the Monte Do Carmo (MDC) gold project in Brazil; total receivable of US$10 million, with an additional US$5 million contingent payment.
• Option Agreement Date: March 4 2024.
• Closing of Option Exercise: November 6 2024.
• Remaining Obligations:
• US$10 million payable within 14 days after the second anniversary of Cerrado’s shareholder approval (June 27 2024 → due July 11 2026).
• US$5 million payable within 14 days of the earlier of: (i) commencement of commercial production from MDC, or (ii) March 31 2027.
• CEO Comment: Mark Brennan noted that the receipt “immediately strengthens our balance sheet and gives us greater flexibility to accelerate our growth initiatives,” highlighting ongoing work at Minera Don Nicolas, Lagoa Salgada feasibility study, and Mont Sorcier iron project.
• Strategic Impact: Enhanced liquidity supports exploration and development across Argentina (Minera Don Nicolas, Las Calandrias), Portugal (Lagoa Salgada VMS), and Canada (Mont Sorcier direct‑reduced iron).

Notable Quotes

“This payment immediately strengthens our balance sheet and gives us greater flexibility to accelerate our growth initiatives. We are now well positioned to push forward on multiple fronts … With stronger liquidity and a clear path to value creation, we're focused on driving the next phase of growth for our shareholders.” – Mark Brennan, CEO & Chairman, Cerrado Gold Inc.