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Cerrado Gold Enters Into Agreement for US$10 Million Equalization Stream Financing at Its Minera Don Nicolás Mine in Argentina
TORONTO, ON / ACCESSWIRE / March 2, 2023 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrad...
About this update from Cerrado Gold Inc
[{"type":"text","content":"Cerrado Gold Enters Into Agreement for US$10 Million Equalization Stream Financing at Its Minera Don Nicolás Mine in ArgentinaTORONTO, ON / ACCESSWIRE / March 2, 2023 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) (\"Cerrado\" or the \"Company\") is pleased to announce that it has entered into an amended and restated metals purchase and sale agreement (the \"Agreement\") with Sprott Private Resource Streaming and Royalty (B) Corp. (\"Sprott\"), to include the concessions acquired by the Company in its acquisition of Minera Mariana Argentina S.A. in 2020 (see the Company's news release dated October 28, 2020), broadening the stream area including, most notably, production from the Las Calandrias heap leach project where production is expected to commence in Q2/23. The Agreement also provides Cerrado with an additional US$10 million in funding in the form of an additional deposit (the \"Deposit\") against future production. Substantially all other terms of the Agreement are materially unchanged.Please refer to Table 1 below for a summary of certain key commercial terms which were amended under the Agreement as compared to the original stream agreement entered into between the parties in 2020 (the \"Original Agreement\").Payment of the Deposit is expected to occur on or about March 7, 2023 and issubject 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.Mark Brennan, CEO & 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 50,000 ozs to approximately 90,000 ozs 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\".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...