Cerrado Gold Secures $10M Financing from Billionaire Investor Eric Sprott

TORONTO, Sept. 03, 2026 /CourierPR/ -- Cerrado Gold Inc. has successfully closed a strategic private placement financing deal with billionaire investor Eric Sprott, raising a total of $10 million in gross proceeds. The company issued 4,000,000 units (the "Units") to an entity controlled by Sprott at a price of CAD$2.50 per Unit. Each Unit consists of one common share in the capital of the company (the "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Warrants allow the holder to purchase one Common Share at CAD$3.35 per share for a period of 24 months from the closing date.

The funds raised will be used for working capital and general corporate purposes. The private placement remains subject to the final acceptance of the TSX Venture Exchange (the "TSXV"). Additionally, all securities issued in connection with the private placement are subject to a four-month and one-day statutory hold period, in accordance with applicable Canadian securities laws and the policies of the TSXV.

Cerrado Gold, a Toronto-based gold production, development, and exploration company, has diversified its portfolio across multiple regions. In Argentina, the company owns the Minera Don Nicolás and Las Calandrias mine in Santa Cruz province. In Portugal, Cerrado holds an 80% interest in the Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In Canada, the company is developing its 100% owned Mont Sorcier Iron project located outside Chibougamau, Quebec.

At Minera Don Nicolás, Cerrado Gold is focused on operational optimization to maximize asset value. The company is also expanding production through its operations at the Las Calandrias heap leach project. Exploration activities are ongoing to further unlock potential resources within the Deseado Massif.

In Portugal, Cerrado Gold is concentrating on the development and exploration of the Lagoa Salgada VMS project, situated on the prolific Iberian Pyrite Belt. This high-grade polymetallic project, known for its rich mineralization of zinc, copper, lead, tin, silver, and gold, offers significant exploration potential both near the deposit and at step-out targets across the 7,209-hectare property. The project's proximity to Lisbon and existing infrastructure provides a low-cost entry to a significant exploration and development opportunity, demonstrating mineable scale and cash flow generation potential.

Meanwhile, in Canada, the company is advancing its Mont Sorcier high-purity, high-grade Direct Reduced Iron (DRI) project, located on traditional Cree territory in the municipality of Chibougamau. This project has the potential to produce a premium iron concentrate with low operating costs and low capital intensity, contributing to the decarbonization of the steel industry and supporting sustainable development goals.

Cerrado Gold's CEO, Mark Brennan, expressed, "This strategic private placement with Mr. Sprott underscores our commitment to expanding our gold production and development capabilities. The funds will support our ongoing exploration and operational optimization efforts, enhancing our position as a leading gold exploration and development company."