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Cerrado Gold Announces 100% Repurchase of Stream Agreements Over Its Minera Don Nicolas and Lagoa Salgada Projects Held by Sprott
TORONTO, July 20, 2026 (GLOBE NEWSWIRE) -- Cerrado Gold Inc. [TSX.V: CERT] [OTCQX: CRDOF] ("Cerrado" or the "Company") is pleased to announce that it has
About this update from Cerrado Gold Inc
TORONTO, July 20, 2026 (GLOBE NEWSWIRE) -- Cerrado Gold Inc. [TSX.V: CERT] [OTCQX: CRDOF] ("Cerrado" or the "Company") is pleased to announce that it has purchased for an aggregate consideration of approximately US$31.34 million the outstanding streaming assets over its producing Minera Don Nicolas Mine in Argentina (“MDN”) and its Lagoa Salgada project in Portugal (“Lagoa Salgada”). The aggregate consideration is comprised of the following: Upfront consideration of approximately US$11.34 million, satisfied with the combination of approximately US$8 million in cash and 3,000,000 common shares of Cerrado; and Deferred consideration of US$20 million, with US$8 million to be settled in cash on or before October 6, 2026, and US$12 million to be settled in cash on or before January 4, 2027. The deferred payment obligations are evidenced by non-interest-bearing promissory notes and have been secured by a general security agreement over the assets of Cerrado delivered in favour of the Sellers. Further details regarding the transaction and purchased assets are provided below. Transaction Highlights & Rationale Maximizes exposure for shareholders to the potential upside generated from the ongoing exploration program at MDN and future exploration and development efforts at Lagoa Salgada; Full leverage to existing production and anticipated expansion at MDN; Provides full exposure to strong commodity prices at both MDN and Lagoa Salgada; Immediately reduces balance sheet leverage and simplifies the Company’s consolidated capital structure, removing security arrangements and increasing the future financial flexibility of the Company; and Sprott equity consideration demonstrates long-term value expectations of the Sellers. Mark Brennan, CEO and Chairman of Cerrado, commented: "We are pleased to complete the repurchase of the streams on our assets, enhancing long-term value for shareholders at a reasonable cost. This transaction will improve future cash flows, strengthen the balance sheet and increase the Company’s leverage to commodity prices longer term. The transaction provides shareholders with greater exposure to future exploration programs at MDN and the development of the Lagoa Salgada project. In connection with this transaction, the Company is currently considering the potential to create its own streaming vehicle, which may include exposure to its own ass...