Minera Don Nicolas Receives Initial US$4 Million Option Payment from Cerro Vanguardia SA for The Sale of its Michelle Exploration Properties for Total Consideration of US$14 Million
Cerrado Gold's subsidiary Minera Don Nicolas (MDN) has received a US$4 million option payment from Cerro Vanguardia SA (CVSA), a subsidiary of AngloGold Ashanti Holdings. The payment is part of a larger US$14 million agreement where CVSA has the option to purchase a 100% interest in certain exploration properties in the south region of MDN's project in Santa Cruz, Argentina. The remaining US$10 million is payable within 3 years upon exercise of the option.
Additionally, Cerrado has issued a US$275,000 loan to Ascendant Resources Inc., bearing 10% annual interest and maturing on demand with minimum 366 days notice. The loan, despite commonality of directors between the companies, is not considered a related party transaction.
Minera Don Nicolas (MDN), sussidiaria di Cerrado Gold, ha ricevuto un pagamento di opzione di 4 milioni di dollari statunitensi da Cerro Vanguardia SA (CVSA), una sussidiaria di AngloGold Ashanti Holdings. Il pagamento fa parte di un accordo più ampio di 14 milioni di dollari, in cui CVSA ha l'opzione di acquistare il 100% di un certo numero di proprietà esplorative nella regione meridionale del progetto di MDN a Santa Cruz, Argentina. I restanti 10 milioni di dollari saranno pagabili entro 3 anni all'esercizio dell'opzione.
Inoltre, Cerrado ha emesso un prestito di 275.000 dollari a Ascendant Resources Inc., con un interesse annuale del 10% e scadenza a richiesta con un preavviso minimo di 366 giorni. Nonostante la comune presenza di amministratori tra le società, il prestito non è considerato una transazione con parti correlate.
Minera Don Nicolas (MDN), subsidiaria de Cerrado Gold, ha recibido un pago de opción de 4 millones de dólares estadounidenses de Cerro Vanguardia SA (CVSA), una subsidiaria de AngloGold Ashanti Holdings. El pago es parte de un acuerdo más amplio de 14 millones de dólares, donde CVSA tiene la opción de adquirir un 100% de ciertos terrenos de exploración en la región sur del proyecto de MDN en Santa Cruz, Argentina. Los restantes 10 millones de dólares son pagaderos dentro de 3 años al ejercer la opción.
Además, Cerrado ha emitido un préstamo de 275,000 dólares a Ascendant Resources Inc., con un interés anual del 10% y con vencimiento a demanda con aviso previo mínimo de 366 días. A pesar de la común presencia de directores entre las empresas, el préstamo no se considera una transacción con partes relacionadas.
세라도 골드의 자회사 미네라 돈 니콜라스 (MDN)는 앵글로골드 아샨티 홀딩스의 자회사인 세로 반과르디아 SA (CVSA)로부터 400만 달러의 옵션 지불금을 받았습니다. 이 지불금은 CVSA가 아르헨티나 산타크루즈에 있는 MDN 프로젝트의 남부 지역에서 특정 탐사 자산의 100% 지분을 구매할 수 있는 옵션을 포함하는 1,400만 달러 규모의 협정의 일부입니다. 나머지 1,000만 달러는 옵션 행사 후 3년 이내에 지급됩니다.
추가로, 세라도는 아센던트 리소스 Inc.에 27만 5천 달러의 대출을 발행했으며, 연 10%의 이자를 부과하고 최소 366일 전에 통지한 후에 요구할 수 있습니다. 두 회사 간의 이사 존재에도 불구하고, 이 대출은 관련 당사자 거래로 간주되지 않습니다.
Minera Don Nicolas (MDN), filiale de Cerrado Gold, a reçu un paiement d'option de 4 millions de dollars américains de Cerro Vanguardia SA (CVSA), une filiale d'AngloGold Ashanti Holdings. Ce paiement fait partie d'un accord plus large d'un montant total de 14 millions de dollars, où CVSA a l'option d'acheter un intérêt de 100% dans certaines propriétés d'exploration dans la région sud du projet de MDN à Santa Cruz, en Argentine. Les 10 millions de dollars restants sont payables dans les 3 ans suivant l'exercice de l'option.
De plus, Cerrado a accordé un prêt de 275 000 dollars à Ascendant Resources Inc., portant un intérêt annuel de 10 % et arrivant à échéance à la demande avec un préavis minimum de 366 jours. Malgré la présence commune de directeurs entre les sociétés, le prêt n'est pas considéré comme une transaction avec des parties liées.
Minera Don Nicolas (MDN), eine Tochtergesellschaft von Cerrado Gold, hat von Cerro Vanguardia SA (CVSA), einer Tochtergesellschaft von AngloGold Ashanti Holdings, eine Optionszahlung von 4 Millionen US-Dollar erhalten. Die Zahlung ist Teil eines größeren Agreements über 14 Millionen US-Dollar, bei dem CVSA die Option hat, ein 100%iges Interesse an bestimmten Explorationsflächen in der südlichen Region des MDN-Projekts in Santa Cruz, Argentinien, zu erwerben. Die verbleibenden 10 Millionen USD sind innerhalb von 3 Jahren nach Ausübung der Option fällig.
Darüber hinaus hat Cerrado ein Darlehen von 275.000 US-Dollar an Ascendant Resources Inc. gewährt, das mit 10% Zinsen pro Jahr belastet ist und auf Verlangen mit einer Mindestkündigungsfrist von 366 Tagen fällig ist. Trotz der gemeinsamen Direktoren zwischen den Unternehmen wird das Darlehen nicht als Transaktion mit nahestehenden Personen angesehen.
- Received immediate US$4 million cash injection strengthening balance sheet
- Potential additional US$10 million within 3 years from option exercise
- Strong operating cash flows reported from existing operations
- Interest income potential from 10% loan to Ascendant Resources
- Divestment of exploration properties could limit future growth potential
Initial US
$4 Million Peso Equivalent Option Payment received which further strengthens balance sheetRemaining consideration of US
$10 Million Pesos equivalent payable on exercise; within 3 yearsCompany well-positioned to drive future growth via its existing operating Minera Don Nicolas gold mine in Argentina and its Mont Sorcier development project in Quebec
Company issues loan to Ascendant Resources Inc
TORONTO, ON / ACCESSWIRE / December 30, 2024 / Cerrado Gold Inc. [TSXV:CERT][OTCQX:CRDOF][FRA:BAI0] ("Cerrado" or the "Company") announces that its wholly owned subsidiary Minera Don Nicolas SA ("MDN") has received the option payment of US
Mark Brennan, CEO and Chairman commented: "The option of these non-core properties immediately improves the balance sheet and short-term capital position at MDN allowing MDN to focus on its core properties. In addition to our current strong operating cashflows at MDN and capital proceeds from previous asset sales, we are well positioned to pursue growth programs at our MDN Mine and our Mont Sorcier high grade iron project, as well as allowing us to consider additional opportunities to grow the Company in the near term."
The Company also announces that it has issued a loan ("Loan") to Ascendant Resources Inc. ("Ascendant") in the principal amount of US
Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Additional information on Ascendant can be found on its website at www.ascendantresources.com.
The Company notes that while there is a commonality of directors and officers between Cerrado and Ascendant, the companies are not "related parties" as defined in Multilateral Instrument 61-101 - Protection of Minority Shareholders in Special Transactions ("MI 61-101") and accordingly the Loan is not considered a "related party transaction" as defined in MI 61-101.
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
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
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
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, that CVSA will exercise the option and pay MDN the consideration upon exercise, the value of Argentina pesos at the CCL Buyers rate, and the business, prospects and potential of Ascendant. In making the forward- looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to the satisfactory completion of due diligence by Amarillo and the exercise of the Option by Amarillo, the satisfaction of all conditions to closing of the Proposed Transaction, including the receipt of all required approvals (including regulatory and shareholder approval), cash flow generated from MDN and changes in economic and monetary policies and regulations in jurisdictions in which Cerrado and its subsidiaries operate. 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
How much did Cerrado Gold (CRDOF) receive for its Michelle exploration properties option?
What is the interest rate and terms of Cerrado Gold's loan to Ascendant Resources?
Who is purchasing Cerrado Gold's Michelle exploration properties?
What will Cerrado Gold (CRDOF) use the option payment proceeds for?
