Published: February 13, 2025 |

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Cerrado Gold has entered into a definitive agreement with Ascendant Resources where Cerrado will acquire all of the issued and outstanding shares of Ascendant not already owned by Cerrado. Upon completion of the arrangement, Cerrado will indirectly own an 80 percent interest in the Lagoa Salgada Project located in Portugal.

“Cerrado has spent the last nine months improving its balance sheet and positioning the company with a strong financial and operating position; it has budgeted its current $21 million cash position to remain at current levels following completion of all of its capital expenditure programs (including Lagoa Salgada) as well as further debt reduction scheduled for 2025,” said Cerrado CEO and Chairman, Mark Brennan.

“The acquisition of Lagoa Salgada is a tremendous opportunity for Cerrado to add a world class, low cost asset with strong cash flow potential and create significant value as well as support our longer-term development plans without compromising our financial strength and current operations,” added Brennan.

“The existing value and significant near-term exploration potential at Lagoa Salgada is well understood by management who see the opportunity to bring the Lagoa project to a construction decision this year with current funding and banking support,” concluded Brennan.

Lagoa Salgada is a well advanced, long-life, low cost polymetallic VMS Project, with gold and silver accounting for approximately 34 percent of NSR, located in the prolific Iberian Pyrite Belt.

Lagoa Salgada has been awarded “Project of National Interest” status from the Government of Portugal and approval of the recently submitted environmental impact assessment (EIA) is expected in the coming months. Ascendant is currently advancing an optimized feasibility study expected to further improve the project economics and be in a position to undertake a construction decision by year end.

Lagoa Salgada is well known to the Cerrado team and the arrangement is expected to offer a number of significant benefits to Cerrado, including:
• Attractive valuation for a robust, well-defined, lowest quartile cost project with substantial near-term value
  creation opportunities
• Project is expected to generate more than $75 million per year of cash flow once in operation, based on the
  existing FS
• Cerrado is well-funded to complete the planned optimized feasibility study as well as progress exploration at the
  highly prospective Lagoa Salgada project
• Development and construction schedule converges well with timeline of Cerrado’s existing portfolio at Minera
  Don Nicolas gold operations and planned development of the Mont Sorcier iron project
• Construction decision expected in Q4 2025

Cerrado Gold is a Toronto-based gold production, development, and exploration company focused on gold projects in South America. The company is the 100 percent owner of both the producing Minera Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina. In Canada, Cerrado Gold is developing it’s 100 percent owned Mont Sorcier Iron Ore and Vanadium project located outside of Chibougamou, Quebec.

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