Cerrado Gold Strengthens Financial Position with Initial US$4 Million Payment

Cerrado Gold Inc. has announced the receipt of an initial US$4 million option payment by its subsidiary Minera Don Nicolas SA from Cerro Vanguardia SA. This transaction, part of a US$14 million deal, involves the sale of exploration properties in Santa Cruz, Argentina. The remaining US$10 million is expected within three years.

This payment enhances Cerrado's balance sheet, allowing focus on its core assets, including the Minera Don Nicolas gold mine and Mont Sorcier development project. CEO Mark Brennan emphasized the improved capital position, enabling potential growth initiatives.

In addition, Cerrado has issued a US$275,000 loan to Ascendant Resources Inc., with a 10% annual interest rate. Despite shared directors, the companies are not considered related parties.