Cerrado Gold Receives Second Loan Advance from Hochschild Subsidiary

TORONTO, ON - Cerrado Gold Inc. announced it has received a second advance of US$1 million as part of a signing loan from Amarillo Mineração do Brasil Ltda., a wholly-owned subsidiary of Hochschild Mining PLC. This advance contributes to a total of US$8 million already received under the loan agreement. The company anticipates the remaining US$7 million will follow shortly, pending a shareholders' approval slated for June 27, 2024.

The funds aim to address immediate capital requirements in Argentina and support ongoing debt reduction. The loan, which totals US$15 million, carries a 10% interest rate and is secured by the option agreement for Hochschild to potentially acquire Cerrado's Monte Do Carmo project in Brazil for US$60 million.

CEO Mark Brennan remarked on the strong progress Cerrado and Hochschild are making towards concluding the deal, alongside robust gold production and favorable market prices aiding the company's financial strategies.

The transaction has received full backing from Cerrado's Board and key shareholders, who represent approximately 22.83% of the company's common shares and have agreed to support the proposed sale.