Cerrado Gold Provides Corporate Update

Rhea-AI Summary

Cerrado Gold, operating under the stock symbol CRDOF, has received the third and final advance of $7 million from Hochschild Mining's subsidiary, Amarillo Mineração do Brasil. This brings total funds from the Signing Loan to $15 million. According to the option agreement, upon shareholder approval, the loan and associated interest will be repaid by setting off an equivalent amount from the purchase price due by Amarillo. If shareholders don't approve the transaction by June 30, 2024, the loan will mature on September 30, 2024, but Hochschild may accelerate it from July 1, 2024. Additionally, Cerrado has appointed McGovern Hurley LLP as its new auditor, pending shareholder approval at the annual meeting on June 27, 2024.

Positive

• Cerrado Gold has secured a total of $15 million in funding through the Signing Loan from Hochschild's subsidiary.
• The terms of the option agreement allow for the loan to be repaid in full through a set-off mechanism upon shareholder approval.
• McGovern Hurley LLP has been appointed as the new auditor, pending shareholder approval, indicating a proactive approach to financial oversight.

Negative

• If Cerrado fails to secure shareholder approval by June 30, 2024, the Signing Loan will mature on September 30, 2024, potentially leading to financial strain.
• Hochschild has the discretion to accelerate the maturity of the loan as early as July 1, 2024, posing a risk of immediate financial obligation.

• Third advance of US$7 million under the Signing Loan with subsidiary of Hochschild Mining PLC ("Hochschild") has now been received
• McGovern Hurley Appointed Auditor

TORONTO, ON / ACCESSWIRE / June 26, 2024 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is pleased to announce it has received the final advance under the Signing Loan from Hochschild in the amount of US$7 million. Total funds received from Amarillo Mineração do Brasil Ltda. ("Amarillo"), a wholly-owned subsidiary of Hochschild, under the Signing Loan now stand at US$15 million.

Under the terms of the option agreement with Amarillo ("Proposed Transaction"), following shareholder approval for the Proposed Transaction, the Signing Loan, together with all accrued and unpaid interest thereon and expenses relating thereto, shall be deemed to be repaid in full by Cerrado by the concurrent set off of an amount equal to the Signing Loan due by Amarillo as part of the Purchase Price. If Cerrado fails to secure the Cerrado Shareholder Approval on or before June 30, 2024, the Signing Loan will mature on September 30, 2024, however Hochschild shall be entitled, in its sole discretion, to accelerate the Signing Loan as early as July 1, 2024. The annual and special meeting of shareholders is to be held on June 27, 2024.

Additionally, Cerrado is pleased to announce it has appointed McGovern Hurley LLP as its auditor and that it will be proposing that shareholders appoint McGovern Hurley LLP as Cerrado's auditor at the upcoming annual and special meeting of shareholders on June 27, 2024 following mutual discussion between Cerrado and KPMG LLP and notice from KPMG LLP not to stand for re-appointment as auditor of the Company.

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 decarbonization 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, appointment of auditors and the outcome of the shareholder meeting. 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 is the recent financial update from Cerrado Gold (CRDOF)?

Cerrado Gold has received the final advance of $7 million from Hochschild, bringing the total Signing Loan funds to $15 million.

What are the terms of the loan agreement between Cerrado Gold (CRDOF) and Hochschild?

Upon shareholder approval, the Signing Loan will be repaid by setting off an equivalent amount from the purchase price due by Amarillo. Without approval, the loan matures on September 30, 2024, with possible acceleration from July 1, 2024.

Who is the new auditor for Cerrado Gold (CRDOF)?

Cerrado Gold has appointed McGovern Hurley LLP as its new auditor, pending shareholder approval at the annual meeting on June 27, 2024.

When is the shareholder meeting for Cerrado Gold (CRDOF) regarding the loan approval?

The annual and special meeting of shareholders is scheduled for June 27, 2024.

What happens if Cerrado Gold (CRDOF) does not get shareholder approval by June 30, 2024?

If shareholder approval is not secured by June 30, 2024, the Signing Loan will mature on September 30, 2024, but Hochschild may accelerate it from July 1, 2024.