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Cerrado Gold Closes US$20 Million Stream Financing Agreement with Sprott Resource Streaming and Royalty to Fund the Monte do Carmo Gold Project in Brazil
Funding solution for development of project to construction decision in Q1 2023 Toronto, Onta...
About this update from Cerrado Gold Inc
[{"type":"text","content":"Cerrado Gold Closes US$20 Million Stream Financing Agreement with Sprott Resource Streaming and Royalty to Fund the Monte do Carmo Gold Project in BrazilFunding solution for development of project to construction decision in Q1 2023Toronto, Ontario--(Newsfile Corp. - March 14, 2022) - CERRADO GOLD (TSXV: CERT) (\"Cerrado\" or the \"Company\") is pleased to announce that it has entered into a US$ 20 million gold and silver stream agreement (the \"Stream Agreement\") with Sprott Resource Streaming and Royalty Corp. (\"Sprott\") for its Monte do Carmo gold project located in the State of Tocantins, Brazil (the \"Project\"). 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 has the ability to buy back 50% of the stream based upon the buyback schedule below. 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$20 million secured note (the \"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. Subject to the approval of the TSX Venture Exchange (the \"TSXV\"), the Company may elect to satisfy the payment of any accrued and unpaid interest on the Note by the issuance of common shares of the Company (the \"Common Shares\") at a price per Common Share equal to 95% of the volume weighted average price (the \"VWAP\") of the Common Shares for the 5 trading days immediately prior to the date payment is due or any combination of cash and Common Shares in the Company's sole discretion. The Note is secured against the Project assets. The Note is intended to subordinate to future project financing for the Project.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 ...