Cerrado Gold (TSX-V: CERT | OTCQX: CRDOF) has announced that it has entered into a US$20M gold and silver stream agreement with Sprott Resource Streaming and Royalty Corp. for its advanced stage, Monte do Carmo gold project located in Tocantins, Brazil.
The stream agreement provides for the sale and delivery to Sprott of 2.25% of all gold and silver produced from the project of which Cerrado can buy back 50% of the stream based upon an established buyback schedule. Proceeds will be used to complete the ongoing works to deliver a 43-101 compliant feasibility study for the project and for general corporate and working capital purposes.
To facilitate funding in advance of commercial production, Sprott has issued a US$20M secured note that bears interest at a rate of 10% per annum, calculated and payable quarterly and will mature on the earlier of the achievement of commercial production together with certain other conditions, or March 14, 2031.
Mark Brennan, CEO & Co-Chairman of the company commented, “We are very pleased to be partnering again with Sprott to fully finance our feasibility study and development works at Monte do Carmo. The facility is a non-dilutive, attractive financing that allows full flexibility to add additional project financing for construction beginning in 2023”.
Mike Harrison, managing partner of Sprott also commented, “Our continued support of Cerrado demonstrates our confidence in management and the quality of their projects. The results of the Monte Do Carmo PEA technical report demonstrate a tier one, high-return, low-cost gold project with excellent exploration potential in a good jurisdiction. This funding provides catalytic capital to advance the project to a construction decision, and also provides the opportunity for Sprott to provide construction financing as the company advances the project.
For further information please visit: https://www.cerradogold.com/
