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Cerrado Receives Notice From Hochschild Subsidiary to Exercise Its Option to Acquire the Monte Do Carmo Gold Project
Closing cash payments of US$30 million and an additional US$15 million future payments due to Cer...
About this update from Cerrado Gold Inc
[{"type":"text","content":"Cerrado Receives Notice From Hochschild Subsidiary to Exercise Its Option to Acquire the Monte Do Carmo Gold ProjectClosing cash payments of US$30 million and an additional US$15 million future payments due to CerradoCompany well-positioned to drive future growth via its operating Minera Don Nicolas gold mine in Argentina and its Mont Sorcier iron ore project in Quebec TORONTO, ON / ACCESSWIRE / October 30, 2024 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) (\"Cerrado\" or the \"Company\") announces that Amarillo Mineração do Brasil Ltda. (\"Amarillo\") a wholly-owned subsidiary of Hochschild Mining PLC (\"Hochschild\"), has provided notice of exercise of its option (\"Option\"), pursuant to an option agreement entered into on March 5, 2024 (the \"Option Agreement\"), to purchase a 100% interest in the Company's Monte Do Carmo project (\"MDC Project\")located in the State of Tocantins, Brazil (the \"Transaction\"), for total consideration of US$60 million (approximately C$83 million) (the \"Purchase Price\"), subject to the achievement of certain milestones. Of the total US$60 million, US$15 million was previously received in connection with granting the Option. Closing of the transaction is expected on November 5, 2024.In consideration of exercising the Option, Amarillo will make further cash payments to Cerrado totaling US$30 million (approximately C$41M) in aggregate (the \"Exercise Consideration\") prior to the date of the closing of the Transaction (the \"Closing\"). The Exercise Consideration is in addition to the US$15 million (approximately C$21M) which has been paid in respect of the Transaction, and a further US$15 million (approximately C$21M) payable at certain milestones following Closing, giving a total consideration of US$60 million in respect of the Transaction (approximately C$83 million). Further information on the consideration paid and payable in respect of the Transaction is set out under the heading \"Transaction Details\" below.The Transaction was overwhelmingly approved by 96.560% of shares represented by proxy at the Company's annual and special meeting of shareholders held on June 27, 2024.Mark Brennan, CEO and Chairman commented: \"The proceeds from the sale of Cerrado's MDC Project will allow us to achieve our goals of growing our MDN gold mine in Argentina, complete a feasibility study on ou...