- Financing of US$10-12 million in promissory notes, with immediate financing in unsecured notes of US$2 million from an Argentinian fund
- Use of proceeds for ongoing development of Calandrias heap leach project in Argentina
- The first gold pour for the Heap Leap project is scheduled for April 2023
TORONTO, ON/ACCESSWIRE/November 17, 2022/Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) (“Cerrado” or the “Company”) is pleased to announce that its wholly owned subsidiary, Minera Don Nicolas SA (“MDN”) has issued an unsecured promissory note to FCI Zofingen Dollar Linked (“FCI”) for 2 million US dollars. (“Promissory note”). The Company expects MDN to issue a total of US$10-12 million in promissory notes over the coming weeks, which are expected to be made available under similar financial terms. The Company intends to use the proceeds to fund ongoing development work in Argentina.
The promissory note is redeemable in Argentine pesos at the official rate and has an original maturity of 60 days from issue and pays interest at the rate of 5% per annum. The promissory note is expected to be converted into a series of larger, longer-term notes, maturing two years after issuance and bearing an interest rate of 5%. At any time prior to maturity, MDN may elect to prepay all or part of the promissory note without incurring a prepayment penalty.
Mark Brennan, CEO and Co-Chair, commented: “This rating enables our Argentinian team to continue to accelerate the development of the Calandrias Heap Leach project which is expected to pour gold in early April 2023.”
The Company paid a cash fee of 1.5% and a cash allocation fee of 1% to Zonfigen Securities SA in connection with the promissory note.
CEO and Co-Chairman
Vice President, Corporate Development
Such. : +1-647-796-0068
Cerrado is a Toronto-based gold production, development and exploration company focused on gold projects in the Americas. The Company owns 100% of the producing Minera Don Nicolás mine in the province of Santa Cruz, Argentina, and the highly prospective development project, Monte Do Carmo, located in the State of Tocantins, Brazil.
At Minera Don Nicolas, Cerrado is maximizing asset value through further optimization of operations and continued production growth. An extensive exploration campaign is underway to further unlock the potential resources of our highly prospective land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through feasibility and production. The Serra Alta deposit indicates resources of 541 koz of contained gold and inferred resources of 780 koz of contained gold. The Preliminary Economic Assessment demonstrates strong economics as well as the potential to be one of the lowest cost producers in the industry. Cerrado also holds an extensive and very promising land package of 82,542 ha in Monte Do Carmo.
For more information on Cerrado please visit our website at: www.cerradogold.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE RELEVANCE OR ACCURACY OF THIS RELEASE.
This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws, all statements, other than statements of historical fact, are forward-looking statements. and are based on expectations, estimates and projections as of the date of this press release. Any statement that discusses predictions, expectations, beliefs, plans, projections, goals, assumptions, future events, or performance (often, but not always, using expressions such as “s’ expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “expected”, “expects”, “estimates”, “believes” or “intends” or variations of these words and phrases or indicating that certain actions, events or results “may” or “might”, “would”, “might” or “will” be assumed to occur or be realized) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements in this press release include, but are not limited to, statements regarding the business and operations of Cerrado. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to, the issuance of the series of longer-term notes and the timing thereof, the use of the promissory note proceeds and the development of the Calandrias Heap Leach Project and the timing thereof. Although Cerrado believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the expectations in the forward-looking statements will prove to be correct. Known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and undertakes no obligation to update or revise forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting these forward-looking statements. looking for statements or otherwise.
THE SOURCE: Cerrado Gold Inc.