Cerrado Gold Makes Final Payment for the Acquisition of Its Minera Don Nicolas Gold Mine in Santa Cruz, Argentina
Rhea-AI Summary
Cerrado Gold (TSXV:CERT, OTCQX:CRDOF) has completed the final US$5 million payment for its Minera Don Nicolas (MDN) gold mine in Argentina, bringing the total acquisition cost to US$47 million. Since the 2020 acquisition, MDN's production has significantly increased from 22,000 to 55,000 ounces annually, with over 200,000 Gold Equivalent Ounces produced through 2024.
The Las Calandrias heap leach operation continues to perform well, with plans for underground operations at Paloma expected to begin in Q3 2025. The company is preparing an exploration campaign focused on mine life extension. Additionally, Cerrado anticipates closing the acquisition of Ascendant Resources Inc. around May 12, 2025, which includes the Lagoa Salgada Project in Portugal, with a construction decision expected by end of 2025.
Positive
- Significant production growth from 22,000 to 55,000 ounces annually
- Over 200,000 Gold Equivalent Ounces produced since 2020
- All-In Sustaining Costs below or in-line with larger regional operations
- Strong performance from Las Calandrias heap leach operation
- Planned expansion with underground operations at Paloma
Negative
- Substantial debt commitment with US$47 million total acquisition cost
News Market Reaction
On the day this news was published, CRDOF gained 0.03%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
US
$5 million payment completes balance of the purchase price for MDNMDN purchase price consideration totals US
$47 million Over ~200,000 Gold Equivalent Ounces ("GEO's") produced at MDN since its acquisition in 2020 to year end 2024
TORONTO, ONTARIO / ACCESS Newswire / April 1, 2025 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") has paid the final US
Mark Brennan, Chairman & CEO commented: "We are very pleased to have satisfied the payment terms for the acquisition of MDN. MDN's growing production along with record high gold prices continues to support the deleveraging of Cerrado's balance sheet and building a healthy financial position. MDN's cashflow generation will enable Cerrado to pursue a rigorous exploration program to expand its resources. We are convinced that MDN continues to be at the early stages of its development cycle, and we are optimistic that MDN has the potential to rival the long established operations on the Deseado Massif."
Since closing the acquisition of MDN in April 2020, Cerrado has significantly grown the production profile from approximately 22,000 ounces to 55,000 ounces per annum and has produced more than 200,000 cumulative GEO's to year end 2024 with All-In Sustaining Costs in-line or below many of the larger operations in the Deseado Massif. Las Calandrias, MDN's Heap Leach operation continues to perform well, and is anticipated to further support Cerrado's production base through the development of an underground operation at Paloma anticipated to begin production in Q3 2025. The Company is currently preparing a robust exploration campaign for the balance of the year, targeting mine life extension from open-pit, underground and heap leach resource expansion.
Assuming the completion of the acquisition of Ascendant Resources Inc., which is anticipated to close on or about May 12, 2025, and is subject to certain closing conditions, the Company's healthy financial position is expected to support development of the Lagoa Salgada Project in Portugal which anticipates a construction decision by the end of 2025.
IR Services and Marketing Agreement
The Company has entered into an engagement with The Korelin Economics Report (the "KE Report") for strategic marketing and investor relations services to raise Cerrado's investor profile.
The KE Report will assist with investor awareness as a third-party content creator through podcasts, management interviews and news amplification through their platform and YouTube channel as well as and investor presentations. The KE Report engagement is for a term of 6 months with the opportunity to extend based on a successful outcome for a fee of C
No bonus fees or stock options will be paid to any of the Consultants. The KE Report is arm's length to 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
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
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, the anticipated closing of the acquisition of Ascendant Resources Inc., the Company's cash position and anticipated future cash flows and debt levels, the production rate and costs at MDN, the exploration potential and mine life at MDN, and the potential impact of the KE Report in raising investor awareness of the Company. 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 ACCESS Newswire
FAQ
What is the total acquisition cost of Minera Don Nicolas (MDN) for Cerrado Gold (CRDOF)?
How much has gold production increased at MDN since Cerrado Gold's (CRDOF) acquisition in 2020?
When will Cerrado Gold (CRDOF) begin underground operations at the Paloma site?
What is the expected timeline for Cerrado Gold's (CRDOF) Lagoa Salgada Project construction decision?
