Cerrado Gold Inc. has entered into an agreement for a strategic non-brokered private placement financing with Eric Sprott for aggregate gross proceeds of C$10 million.

The transaction is structured around the issuance of 4,000,000 units priced at C$2.50 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Every whole warrant entitles the holder to acquire an additional common share at an exercise price of C$3.35 for a period of 24 months following the closing date.

Closing of the financing is expected to occur on or about September 4, 2026. The transaction remains subject to customary closing conditions, including the approval of the TSX Venture Exchange. All securities issued under the private placement will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with Canadian securities laws. Cerrado plans to apply the net proceeds toward working capital and general corporate purposes.

The capital injection reinforces the company's financial position as it advances ongoing operational and exploration initiatives across its asset base. At the Minera Don Nicolas operation in Argentina, Cerrado revised its exploration plans to scale up drilling to approximately 50,000 metres, supported by the addition of three new drill rigs. This follows the acquisition of the Falcon properties, which lie adjacent to the operation's Calandrias setup, further consolidating the company's footprint in the Deseado Massif.

“We are pleased to welcome Mr. Sprott as a strategic investor in Cerrado.”

— Mark Brennan, CEO and Chairman

The funding adds flexibility as Cerrado continues to advance its producing gold assets in Argentina, its Lagoa Salgada polymetallic project in Portugal, and the Mont Sorcier iron project in Quebec.

Read the full announcement: Cerrado Gold Announces $10 Million Strategic Private Placement with Eric Sprott