Cerrado Gold Sells 100% Interest in Monte Do Carmo Project for $60 Million

Cerrado Gold Inc. has announced a significant transaction with Hochschild Mining PLC's subsidiary, Amarillo Mineração do Brasil Ltda. Amarillo has exercised its option to acquire a 100% interest in Cerrado's Monte Do Carmo gold project for $60 million. The agreement was formed earlier this year, granting Amarillo an option to purchase the project, located in Tocantins, Brazil. The transaction, expected to close on November 5, 2024, involves cash payments totaling $30 million before closing, with an additional $15 million due upon meeting certain milestones.

Approval for the deal was overwhelmingly received, with 96.560% shareholder support in June 2024. This sale allows Cerrado to advance its projects, including the Minera Don Nicolás gold mine in Argentina and the Mont Sorcier iron ore project in Quebec. Cerrado CEO Mark Brennan stated that the proceeds will help grow existing operations, improve financial stability, and explore new opportunities.