Cerrado Gold (TSX-V:CERT) has arranged a C$10 million ($10.06 million) strategic private placement with Canadian investor Eric Sprott.
The non-brokered financing comprises four million units priced at C$2.50 each.
Each unit contains one common share and half a warrant. Each whole warrant can be exercised at C$3.35 per share for 24 months following the placement’s closing.
Cerrado intends to use the net proceeds for working capital and general corporate purposes.
CEO Mark Brennan says the investment adds Sprott as a strategic shareholder.
“We are pleased to welcome Mr Sprott as a strategic investor in Cerrado,” Brennan says.
The placement is expected to close on or around 4 September, subject to customary conditions and approval from the TSX Venture Exchange.
Securities issued under the placement will carry a statutory hold period of four months and one day.
Cerrado owns the producing Minera Don Nicolas and Las Calandrias mines in Argentina’s Santa Cruz province. The company is working to optimise operations at Minera Don Nicolas and grow production from the Las Calandrias heap-leach operation.
It also holds an 80% interest in the Lagoa Salgada Volcanogenic Massive Sulphide Project in Portugal through Redcorp – Empreendimentos Mineiros. The project contains zinc, copper, lead, tin, silver, and gold mineralisation.
In Canada, Cerrado owns the Mont Sorcier Iron Project near Chibougamau, Québec, which it is assessing for the production of high-grade iron concentrate.
Cerrado is a Toronto-based gold producer, developer, and explorer with operating and development assets across Argentina, Portugal, and Canada.
Write to France Pinzon at Mining.com.au
Images: Cerrado Gold
