- Cerrado Gold (CERT) has entered into a US$ 20 million gold and silver stream agreement with Sprott Resource Streaming and Royalty Corp.
- The agreement is for the company’s Monte do Carmo gold project located in Brazil
- Sprott will receive 2.25 per cent of the gold and silver produced from the project
- Proceeds will be used to complete the 43-101 Compliant Feasibility Study for the project
- Cerrado Gold is a public gold producer and exploration company with projects in Brazil and Argentina
- Cerrado Gold Inc. (CERT) opened trading at C$1.51 per share
Cerrado Gold (CERT) has entered into a US$ 20 million gold and silver stream agreement with Sprott Resource Streaming and Royalty Corp.
The agreement provides for the sale and delivery to Sprott of 2.25 per cent of all gold and silver produced from the company’s Monte do Carmo gold project located in Brazil.
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 fund the investment, Sprott has issued a US$20 million secured note that bears interest at a rate of 10 per cent per annum.
Mark Brennan, CEO & Co-Chairman of Cerrado Gold commented on the agreement.
“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 of Sprott, commented,
“Our continued support of Cerrado demonstrates our confidence in management and the quality of their projects. The results of the Monte Do Carmo PEA Technical Report demonstrate a Tier One, high-return, low-cost gold project with excellent exploration potential in a good jurisdiction. This funding provides catalytic capital to advance the project to a construction decision, and also provides the opportunity for Sprott to provide construction financing as the company advances the project.”
Cerrado Gold is a public gold producer and exploration company with projects in Brazil and Argentina.
Cerrado Gold Inc. (CERT) opened trading at C$1.51 per share.
