Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has announced that its wholly owned subsidiary, Minera Don Nicolas SA (MDN), has issued an unsecured promissory note to FCI Zofingen Dollar Linked for US$2M.
Mark Brennan, CEO and co-chairman commented “This note allows our Argentinian team to continue to fast-track the development of the Calandrias Heap Leach project which is expected to pour gold in early April 2023.” The company paid a 1.5% cash commission and a 1% cash allocation fee to Zonfigen Securities SA in relation to the promissory note.
The company expects MDN to issue an aggregate of US$10-12M in promissory notes in the coming weeks, which are expected to be made available under similar financial terms.
Cerrado intends to use the proceeds to fund ongoing development works at its Calandrias Heap Leach Project in Argentina. The promissory note is repayable in Argentinian pesos at the official rate and has an initial maturity of 60 days from issuance and pays interest at a rate of 5% per annum.
Cerrado has also stated it expects the promissory note to roll into a larger, longer-term series of notes, maturing two years from issuance and bearing a rate of 5% interest. At any time prior to maturity, MDN can elect to prepay all or any portion or the promissory note without incurring any early repayment penalty.
To find out more, please visit www.cerradogold.com
