Cerrado Gold Inc. (TSXV:CERT | OTCQX:CRDOF) has entered into an amended and restated metals purchase and sale agreement with Sprott Private Resource Streaming and Royalty (B) Corp., to include the concessions acquired by the company in its acquisition of Minera Mariana Argentina S.A. in 2020, broadening the stream area including, most notably, production from the Las Calandrias heap leach project where the company expects cerrado to commence in Q2/23.
Mark Brennan, CEO and chairman of the company, commented, “We are very pleased to be expanding our partnership with our friends at Sprott Streaming and Royalty. We view this additional investment as a strong indication of support for our ongoing development plans to increase the gold production capacity at MDN from 50,000oz to approximately 90,000oz by mid-2024 with the ongoing development of two heap leaching facilities. Further, the additional inflow of funds is expected to allow the company to capitalize on the success at Las Calandrias and provide additional non-dilutive financing to fund our development plans”.
The agreement also provides Cerrado with an additional US$10M in funding in the form of an additional deposit against future production. Substantially all other terms of the agreement are materially unchanged.
Payment of the deposit is expected to occur on or about 7 March 2023 and is subject to the satisfaction of certain conditions, including there being no material adverse effect since the date of the agreement and to the parties receiving any required regulatory approvals.
Mike Harrison, managing partner of Sprott, commented, “Our continued support of Cerrado Gold reflects the success achieved at MDN to date and our confidence in the quality of the Las Calandrias heap leach project to expand the production at MDN. This funding will provide increased exposure to a well performing asset in a highly prospective region.”
To find out more, please visit www.cerradogold.com