(All numbers reported in US dollars)
TORONTO, ON / ACCESSWIRE / October 18, 2023 / Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is pleased to announce that it has completed the tender process for its Export Credit Agency ("ECA") Supported Non-Recourse Project Financing, and expects to complete the on-boarding and appointment process within the next few weeks. The Company has chosen two international banks to act as MLAs; one for the Monte Do Carmo Project ("MDC") and another as MLA for its Mont Sorcier Project ("MS") in Quebec.
As announced on September 5th, the Company together with its advisors, SD Capital Advisory Ltd and GKB Ventures Ltd ("S&G"), initiated a tender process to solicit interest from a number of global Project Finance Banks to act as MLA for the Company's ECA Supported Non-Recourse Project Financing, supported by the UK Export Finance agency ("UKEF"). As a result of this process the company received several compelling bids and have evaluated the bids based on experience, execution capabilities and financial terms. The institutions selected have extensive experience in ECA financing, a longstanding relationship with UKEF and presented competitive terms for the financing. The Company is currently undertaking a review of formal engagement letters with each Bank and will announce the banks and their terms once signed.
As outlined previously, UKEF has expressed an interest to provide support for up to US$190 million for the MDC Project and up to US$420 million for the MS Project, representing 70% of total capital expenditure, interest payable during construction, political risk insurance premium as well as other approved expenditures for each project.
The appointment of the MLAs is a significant milestone for the project financing requirements for both the MDC and MS Projects. The next phase of the process will comprise a formal due diligence period before final binding offers and documentation which are expected to be completed in 2Q 2024. This process is expected to start immediately in the case of MDC but will not be initiated at MS for a period of 6 months, to align more closely with the completion of the planned feasibility study.
Mark Brennan, CEO and Chairman, stated: "After a robust tender process, we are very pleased to have been in a position to generate the support of two very strong Project Financing Institutions to lead our Project Financings. We view the early commitment of the ECA's and the MLAs as a testament to the robust financial strength of the MDC and MS projects. With the completion of the MDC Feasibility Study imminent, we are excited to bring the first of these two great projects towards a fully funded project development decision during Q2/2024."
Mark Brennan | Mike McAllister |
CEO and Chairman | Vice President, Investor Relations |
Tel: +1-647-805-5662 | |
mmcallister@cerradogold.com |
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 Brazil, Cerrado is rapidly advancing the Serra Alta deposit at its Monte Do Carmo Project, through feasibility and into production. Serra Alta is expected to be a high-margin and high-return project with significant exploration potential on an extensive and highly prospective 82,542 hectare land package.
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 decarbonisation of the industry and the achievement of SDG goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Disclaimer
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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. In making the forward- looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to the estimated time to complete the feasibility study for MDC and MS, the Company's ability to successfully close a financing with UKEF and the selected MLA and to fully fund construction of the projects in 2024, as well the timing of the feasibility study at Monte Do Carmo. 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.