Cerrado Gold (TSXV: CERT) has repurchased the metal streams held over two of its projects, unwinding financing arrangements with Sprott and clearing a layer of complexity from its balance sheet.
The company agreed to pay roughly US$31.34 million to acquire the outstanding streaming assets tied to its producing Minera Don Nicolas mine in Argentina and its Lagoa Salgada project in Portugal. Both streams, along with a related secured note, have been cancelled outright.
The upfront portion came to US$11.34 million, split between US$8 million in cash and three million Cerrado shares priced at C$1.5719 each, a 3% discount to the stock’s recent 10 day average. The shares carry a four month hold.
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The rest of the consideration is deferred. Cerrado owes US$8 million by October 6 and a further US$12 million by January 4, 2027, both structured as non-interest bearing promissory notes and backed by security over the company’s assets. The transaction closed effective July 17.
“We are pleased to complete the repurchase of the streams on our assets, enhancing long-term value for shareholders at a reasonable cost,” said Mark Brennan, chief executive and chairman. He noted the deal should improve future cash flows and strengthen the balance sheet, and flagged that the company is weighing whether to launch its own streaming vehicle down the line.
The timing follows a solid operational quarter. Minera Don Nicolas produced 15,415 gold-equivalent ounces in the second quarter, up from 13,835 a year earlier, bringing first half output to 28,257 ounces. Cerrado has guided to annual production of 50,000 to 60,000 ounces.
Cerrado Gold last traded at $1.63 on the TSX Venture.
