Cerrado Gold Announces Acquisition of Ascendant Resources

Cerrado Gold Inc. has declared its intention to acquire Ascendant Resources Inc. Through this acquisition, Cerrado will gain an 80% interest in the Lagoa Salgada Project in Portugal. This project is valued at $147 million post-tax NPV with a 39% IRR, according to a study by Ascendant. The project portfolio is rich in precious metals and minerals, such as gold, silver, zinc, and copper. An optimized feasibility study is due in 2025, with production expected to begin in the second half of 2027.

The strategic move aligns with Cerrado's plan to bolster its assets and drive significant cash flow. The acquisition terms involve Ascendant shareholders receiving one Cerrado share for every 7.8 Ascendant shares. Post-transaction, Ascendant shareholders will own about 21% of the outstanding Cerrado shares.

The project, under the optimized feasibility study, promises minimal equity dilution and a robust cash flow, potentially generating over $75MM annually. Additionally, environmental impact assessments and financing plans are progressing, supporting the project’s development and future construction.