Cerrado Gold Povides Update on Cease Trade Order

Rhea-AI Summary

Cerrado Gold has provided an update regarding the cease trade order (CTO) issued on May 7, 2024, by the Ontario Securities Commission (OSC) due to the company's failure to file its audited annual financial statements for the year ending December 31, 2023. The filings were initially due by April 29, 2024.

Despite efforts to work with auditors KPMG LLP, Cerrado expects to complete and file the annual statements by June 6, 2024. Consequently, the company anticipates missing the May 30, 2024, deadline for its interim financial statements for the first quarter of 2024. An application for a management cease trade order (MCTO) was denied as the CTO is already in effect and will remain until the interim filings are completed, expected two weeks post-annual filings.

No insolvency proceedings or undisclosed material information were reported.

Positive

• Management is actively working with auditors KPMG LLP to complete required filings.
• The company expects to file annual financial statements by June 6, 2024.
• No insolvency proceedings are currently affecting the company.

Negative

• A cease trade order (CTO) was imposed by the Ontario Securities Commission due to delayed filings.
• The company missed the initial April 29, 2024, deadline for annual financial statements.
• An application for a management cease trade order (MCTO) was refused.
• The company expects to miss the May 30, 2024, deadline for Q1 interim financial statements.
• The CTO will remain in place until interim filings are completed, projected two weeks post-annual filings.

TORONTO, ON / ACCESSWIRE / May 30, 2024 / Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is providing this update on the status of the cease trade order (the "CTO") imposed on May 7, 2024 by its principal regulator, the Ontario Securities Commission (the "OSC"), under National Policy 11-207, following the Company's failure to file its audited annual financial statements and accompanying management's discussion and analysis for the year ended December 31, 2023 and related filings (collectively, the "Annual Filings"). Under National Instrument 51-102, the Annual Filings were required to be filed by April 29, 2024.

Company management continues to work diligently with its auditors, KPMG LLP, to complete the Annual Filings. The Company currently expects the Annual Filings to be completed and filed on or about June 6, 2024.

As a result of the delay in filing the Annual Filings, the Company expects that it will be unable to file its interim financial statements and accompanying management's discussion and analysis for the three months ended March 31, 2024, and related filings (collectively, the "Interim Filings") by the May 30, 2024 filing deadline.

The Corporation applied to the OSC for a management cease trade order (an "MCTO") in respect of the delay in filing of the Interim Filings, but was refused on the basis that it already had a CTO outstanding. The Company has been advised that the CTO shall continue until the Interim Filings have been filed.

The Company expects that it will take approximately two weeks to complete the Interim Filings following the date of filing of the Annual Filings.

The Company is not subject to any insolvency proceedings. There is no material information concerning the affairs of the Company that has not been generally disclosed.

About Cerrado

Cerrado Gold is a Toronto-based gold production, development, and exploration company focused on gold projects in South America. The Company is the 100% owner of both the producing Minera Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina, and the highly prospective Monte Do Carmo development project, located in Tocantins State, Brazil. In Canada, Cerrado Gold is developing it's 100% owned Mont Sorcier Iron Ore and Vanadium project located outside of Chibougamou, Quebec.

In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through continued operational optimization and is growing production through its operations at the Las Calandrias Heap Leach project. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package in the heart of the Deseado Masiff.

In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron Ore and Vanadium project, which has the potential to produce a premium iron ore concentrate over a long mine life at low operating costs and low capital intensity. Furthermore, its high grade and high purity product facilitates the migration of steel producers from blast furnaces to electric arc furnaces contributing to the decarbonisation of the industry and the achievement of SDG goals.

For more information about Cerrado please visit our website at: www.cerradogold.com.

Mark Brennan
CEO and Chairman

Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
mmcallister@cerradogold.com

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado and the completion and filing of the Annual Filings, the Interim Filings and the CTO. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such 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 assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

SOURCE: Cerrado Gold Inc.

View the original press release on accesswire.com

FAQ

What caused the cease trade order on Cerrado Gold (CRDOF)?

The cease trade order was imposed due to Cerrado Gold's failure to file its audited annual financial statements for the year ending December 31, 2023, by the April 29, 2024, deadline.

When does Cerrado Gold (CRDOF) expect to file its delayed annual financial statements?

Cerrado Gold expects to file its delayed annual financial statements on or about June 6, 2024.

Will Cerrado Gold (CRDOF) be able to file its Q1 2024 interim financial statements on time?

No, Cerrado Gold expects to miss the May 30, 2024, deadline for Q1 2024 interim financial statements.

Why was the management cease trade order (MCTO) application by Cerrado Gold (CRDOF) refused?

The MCTO application was refused because the company already has a cease trade order (CTO) in place.

How long will the cease trade order on Cerrado Gold (CRDOF) remain in effect?

The cease trade order will remain until the interim financial statements are filed, expected to be approximately two weeks after the annual filings are completed.