Cerrado Gold Inc. announced that its wholly owned subsidiary, Minera Don Nicolas S.A. ("MDN"), have entered into an option agreement ("Option Agreement") with Cerro Vanguardia S.A. ("CVSA") a wholly-owned subsidiary of AngloGold Ashanti Holdings Plc, whereby MDN has granted to CVSA the option to purchase a 100% interest in certain properties (the "Michelle Properties") located in the south region of MDN's Minera Don Nicolas Project in Santa Cruz, for total consideration of the Argentina peso equivalent of US$14 million (approximately C$19 million), subject to the fulfillment of certain conditions. The Option Agreement was ratified December 23, 2024, with effect December 18, 2024.
By Panorama Minero
The Purchase Price is payable in the following stages:
• US$4 million equivalent in Argentina pesos at the CCL Buyers rate upon grant of the Option (paid on 30 December 2024); and
• US$10 million equivalent in Argentina pesos at the CCL Buyers rate upon exercise of the Option within 3 years.
• During the Option Period CVSA will take operational control of the Michelle Properties.
Mark Brennan, CEO and Chairman of Cerrado Gold commented: "The option of these non-core properties to CVSA, the logical owner of these properties, is highly accretive to Cerrado and its shareholders. The Transaction will immediately improve the balance sheet and short-term capital position at MDN, allowing us to focus on our core properties. With current strong operating cash flows at MDN and capital proceeds from asset sales, we are very well positioned to pursue strong growth programs at MDN and at our Mont Sorcier high grade iron project, as well as look at additional opportunities to grow the Company in the near term."
The Michelle Properties are a collection of 14 exploration concessions, totaling approximately 14,000 hectares located approximately 100 km to the South-East of the MDN plant and 10 km to the North-West of CVSA's Cerro Vanguardia Mine.
The Michelle Properties are highlighted in the following map:
