Cerrado Gold Inc. Enters Option Agreement with AngloGold Subsidiary for US$14 Million

Cerrado Gold Inc., alongside its subsidiary Minera Don Nicolas S.A., has announced an agreement with AngloGold Ashanti's subsidiary Cerro Vanguardia S.A. The deal involves an option for Cerro Vanguardia to acquire a 100% interest in the Michelle Properties in Santa Cruz, Argentina. The total potential consideration amounts to US$14 million, payable in two stages: an initial US$4 million, followed by US$10 million within a three-year period upon exercising the option.

During this period, Cerro Vanguardia will control operations of the Michelle Properties. This transaction aims to strengthen Cerrado's balance sheet, enabling the company to focus on core gold mining and iron ore projects, as stated by CEO Mark Brennan. Prior consents from relevant royalty holders have been secured, facilitating a potential smooth completion.