Published: March 9, 2023 |

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Cerrado Gold, a Canada-based gold production, development, and exploration company, has agreed to acquire Voyager Metals, a mineral exploration company based in Canada.

Under the terms of the agreement, Voyager Metal’s shareholders will receive one common share of Cerrado Gold’s share for every six Voyager Metal shares held. The ratio implies an offer value of C$0.1523 ($0.11) per Voyage Metal share.

With the acquisition, Cerrado Gold will indirectly own full interest in the Mont Sorcier iron and vanadium project in Canada, through a wholly-owned subsidiary.

Located near Chibougamou, Quebec, the Mont Sorcier project is a well-advanced open-pit magnetite iron ore and vanadium mine in a tier-one mining jurisdiction.

According to the preliminary economic assessment completed in September 2022 by Voyager Metals, the Mont Sorcier project is estimated to produce five million metric tonnes per annum (mmtpa) of iron concentrates over an expected mine life of 21 years.

The project is also expected to have an after-tax net present value (NPV) of $1.6 billion and an internal rate of return (IRR) of 43 percent.

Cerrado Gold said that the Mont Sorcier iron and vanadium project is nearing completion of a bankable feasibility study, which is anticipated by the end of this year.

“We continue to see strong production growth at our MDN operation and we are very confident in delivering a strong feasibility study by the end of May for MDC. The addition of the Mont Sorcier project represents a significant opportunity to increase Cerrado’s long term cash generation, asset life, and relevance to the mineral sector. Mont Sorcier is expected to be a very high margin, high return project similar to our very robust Monte Do Carmo project,” said Cerrado Gold CEO and Co-chairman Mark Brennan.

“In addition, we see tremendous synergies to reduce future equity requirements to develop the company’s assets and this will add significant value to all shareholders of the combined company,” added Brennan.

“Upon careful review and in light of current market conditions, we believe this transaction is in the best interest of Voyager shareholders. This transaction is positioned to deliver to shareholders enhanced share liquidity, access to immediate gold production cash flow thereby addressing current funding issues while minimizing future dilution,” said John Priestner, chairman of the Voyager Special Committee.

“This transaction puts the Mont Sorcier projecton a viable path to development within a stronger operating entity to create long term value for all shareholders,” added Priestner.

Source: NS Energy

About Cerrado Gold
Cerrado is a Toronto based gold production, development and exploration company focused on gold projects in the Americas. The company is the 100 percent owner of both the producing Minera Don Nicolas mine in Santa Cruz province, Argentina, and the highly prospective development project, Monte Do Carmo located in Tocantins State, Brazil.

To stop by Cerrado’s website, CLICK HERE

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