Cerrado is building undervalued world class assets to drive significant cash flow
Attractive opportunity to acquire 80% of the robust Lagoa Salgada VMS Project with a Post-tax NPV of US$147 million and a 39% IRR in current Feasibility Study.
Adds substantial precious metals and critical minerals exposure (34% silver & Gold, 30% Zinc, 15% copper, 14% lead, 7% tin)
Expected lowest cost quartile production with US$0.59/lb Zinc Equivalent All in sustaining cost (AISC) for the first 5 years
Underexplored asset with extensive exploration potential
Optimized Feasibility Study due in Q3, construction decision by year end 2025 and initial production expected in second half of 2027.
Limited equity dilution required to bring Lagoa Salgada to production
Cerrado current Cash position of US$21 million budgeted to end year flat after all capital expenditures and debt reduction. Projected cash balance does not include payment of $15M due from asset sale to Hochschild and potential $10M option payment from Anglo Gold.
EIA Approval expected in Q2 2025 and Optimized Feasibility Study in Q3 2025
Construction well supported with low-cost Export Credit Agency Project Financing with Tier 1 lenders, support from Sprott and potential off takers to move the project into production.
Management to host Conference Call to discuss transaction on February 3, 2025, at 10:00 AM EST
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