Cerrado Gold Inc. (CERT) has reached an agreement to repurchase all outstanding streaming assets tied to its producing Minera Don Nicolás mine in Argentina and its Lagoa Salgada project in Portugal. The company successfully negotiated the buyback from Sprott Private Resource Streaming and Royalty for an aggregate consideration of approximately US$31.34 million. This transaction, which closed effective July 17, 2026, effectively removes the previous security arrangements, providing the developer with greater operational autonomy over its core assets. Investors responded positively to the announcement, with the company’s stock rising 4.29% in the following session.

The financial structure of the deal involves an upfront payment of roughly US$11.34 million, split between US$8 million in cash and the issuance of 3,000,000 common shares. The remaining US$20 million in deferred consideration is split into two cash installments: US$8 million due by October 6, 2026, and US$12 million due by January 4, 2027. Management noted that these deferred obligations are evidenced by non-interest-bearing promissory notes. By simplifying its capital structure, the company aims to improve future cash flows and expand its leverage to commodity price fluctuations.

"We are pleased to complete the repurchase of the streams on our assets, enhancing long-term value for shareholders at a reasonable cost. This transaction will improve future cash flows, strengthen the balance sheet and increase the Company’s leverage to commodity prices longer term. The transaction provides shareholders with greater exposure to future exploration programs at MDN and the development of the Lagoa Salgada project. In connection with this transaction, the Company is currently considering the potential to create its own streaming vehicle, which may include exposure to its own assets and potential third-party streams, which we believe will further enhance shareholder value given the current premium offered to streaming vehicles in the market relative to operating companies."

— Mark Brennan, CEO and Chairman

Beyond the immediate project-level benefits, the move reflects the company's broader strategic focus. Cerrado Gold currently operates the Minera Don Nicolás mine while actively expanding production at the Las Calandrias heap leach site in Argentina. In Portugal, the explorer holds an 80% interest in Lagoa Salgada, a polymetallic VMS project. Meanwhile, its Canadian portfolio includes the Mont Sorcier iron project in Quebec, which is being developed to produce high-purity concentrate specifically for electric arc furnace steel production, positioning the company to support industrial decarbonization efforts.

Reflecting on the relationship with its financing partner, the leadership team emphasized that the deal structure serves as a mutual realignment of expectations. The equity portion of the upfront payment was specifically highlighted as a demonstration of long-term confidence in the company’s asset base.

"We wish to express our appreciation to the team at Sprott for their support of the Company over the past years, and we appreciate their desire for equity exposure as an endorsement of the upside that exists in Cerrado going forward."

— Mark Brennan, CEO and Chairman

Read the full announcement: Cerrado Gold Announces 100% Repurchase of Stream Agreements Over Its Minera Don Nicolas and Lagoa Salgada Projects Held by Sprott