Business
Cabral Gold Receives Second and Final Tranche Regarding the NSR Royalty Agreement with Osisko Gold Royalties on the Cuiú Cuiú Gold Project, Brazil
Vancouver, British Columbia--(Newsfile Corp. - July 28, 2023) -  Cabral Gold Inc.  (T...
About this update from Cabral Gold, Inc.
[{"type":"text","content":"Cabral Gold Receives Second and Final Tranche Regarding the NSR Royalty Agreement with Osisko Gold Royalties on the Cuiú Cuiú Gold Project, BrazilVancouver, British Columbia--(Newsfile Corp. - July 28, 2023) -  Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) (\"Cabral\" or the \"Company\") is pleased to announce that it has received the second and final US$2.5 million tranche relating to the royalty agreement with Osisko Gold Royalties Ltd. (\"Osisko\") (OR: TSX & NYSE) announced on July 12, 2023 pursuant to which Osisko agreed to purchase a 1% net smelter return (\"NSR\") royalty on the Cuiú Cuiú gold project for a total cash consideration of US$5 million.Cuiú Cuiú ProjectCuiú Cuiú is an advanced gold exploration and development project located in the state of Para, Brazil, immediately adjacent to the Tocantinzinho gold project which is currently under construction. The Cuiú Cuiú project hosts NI 43-101 compliant mineral inventory of 21.6 M @ 0.87 g/t gold (604,000oz) in the Indicated Resources category and 19.8 Mt @ 0.84 g/t gold (534,500 oz) in the Inferred Resources category, as per the 43-101 technical report dated October 12, 2022.A Prefeasibility Study considering potential exploitation of weathered oxide saprolitic gold mineralization is currently being undertaken by Ausenco. If positive, the study should pave the way for a construction decision for trial mining and heap-leach processing of the near-surface oxide gold mineralization at Cuiú Cuiú. Details of the TransactionCabral has granted Osisko a 1% NSR royalty from the production of all products from the Cuiú Cuiú property. The total consideration is US$5 million which has been paid in two tranches; US$2.5 million was paid on closing and the remaining US$2.5 million was paid on July 26, 2023 following the registration of certain security pledges.Following the completion of a Feasibility Study, Cabral will pay Osisko US$250,000 on the date thereof and each subsequent anniversary of said completion by way of an advance payment, until the commencement of commercial production. These payments shall be credited against future royalty payments due under the royalty agreement.The terms of the transaction allow Cabral to use a portion of the proceeds for general working capital purposes.T...