- Eric Sprott, one of the world’s top junior mining investors, plans to take a C$10 million stake in Cerrado Gold (TSXV:CERT) through a non-brokered private placement.
- The company is active across the mining lifecycle advancing projects in Canada, Portugal and Argentina.
- Cerrado Gold stock (TSXV:CERT) has added 157.22 per cent year-over-year.
Eric Sprott, one of the world’s top junior mining investors, plans to take a C$10 million stake in Cerrado Gold (TSXV:CERT) through a non-brokered private placement.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Proceeds, destined for working capital and general corporate purposes, will support the advancement of a global portfolio that includes producing assets. Here’s a brief breakdown:
- The Minera Don Nicolas mine in Argentina produces about 55,000 ounces of gold per year and is under active exploration to expand the resource base.
- The Lagoa Salgada volcanogenic massive sulphides project in Portugal, only 80 km from Lisbon, is prospective for zinc, copper, lead, tin, silver and gold, with a 2023 feasibility study estimating average annual EBITDA of US$75.5 million over the first five years and an initial CAPEX requirement of only US$164 million.
- The Mont Sorcier iron project in Quebec rounds off the portfolio with proven potential to become a long-life, low-cost mine, producing a high-grade commodity suitable for steel producers to transition to electric arc furnaces and lower operational emissions.
Sprott’s investment follows Cerrado’s conviction-building Q2 2026, which saw the company produce 15,415 gold equivalent ounces (GEO), more than doubling revenue year-over-year, while growing net income from operations by more than seven-and-a-half times.
The company expects to produce 50,000-60,000 GEO during the calendar year amid declining costs as output ramps up in the coming quarters.
Financing details
Cerrado will issue 4 million units priced at C$2.50, with each unit consisting of one common share and one-half of one share purchase warrant.
Each warrant entitles the holder to purchase one share for C$3.35 for 24 months from the closing of the private placement.
According to Monday’s news release, the transaction is expected to close by September 4, 2026, contingent on customary closing conditions, including approval from the TSX Venture Exchange.
All securities issued will be subject to a holding period of four months and one day as required by Canadian securities law.
About Cerrado Gold
Cerrado Gold is a company active across the mining lifecycle advancing projects in Canada, Portugal and Argentina.
Cerrado Gold stock (TSXV:CERT) is up by 0.6 per cent on the news trading at C$2.50 as of 10:01 am ET. The stock has added 157.22 per cent year-over-year.
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