Cerrado Gold (TSX-V:CERT) has repurchased streaming agreements over its Minera Don Nicolas Mine and Lagoa Salgada Project for US$31.34 million ($44.29 million).
The company acquired the outstanding streaming assets from Sprott Private Resource Streaming and Royalty entities, covering its producing Minera Don Nicolas mine in Argentina and the Lagoa Salgada project in Portugal.
Cerrado satisfied the upfront consideration of US$11.34 million through US$8 million in cash and three million common shares valued at C$1.5719 each. The price represents a 3% discount to the 10-day volume-weighted average price.
The shares are subject to a four-month statutory hold period.
The remaining US$20 million will be paid through deferred cash payments, with US$8 million due by 6 October 2026, and US$12 million by 4 January 2027. The deferred obligations are secured by a general security agreement over Cerrado’s assets.
This transaction closed on 17 July 2026 and covers the amended metals purchase agreement for MDN dated 2 March 2023, and the Lagoa Salgada metals purchase agreement from 25 November 2022.
The repurchase also includes a US$19 million secured note bearing 10% annual interest issued to Sprott Collector.
“This transaction will improve future cash flows, strengthen the balance sheet and increase the company’s leverage to commodity prices longer term,” CEO Mark Brennan says.
Brennan notes the company is considering creating its own streaming vehicle, potentially including exposure to third-party streams.
The repurchase provides Cerrado with full exposure to production and expansion at MDN while maximising shareholder exposure to exploration programs at both properties.
This transaction removes existing security arrangements and increases the company’s financial flexibility.
The deal has received conditional acceptance from the TSX-V and remains subject to final exchange approval.
Cerrado Gold is a gold producer advancing the Minera Don Nicolas mine in Argentina and the Lagoa Salgada project in Portugal.
Write to JC Villarba at Mining.com.au
Images: Cerrado Gold
