Cerrado Gold Closes Acquisition of Minera Don Nicolas; the next Intermediate producer?
March 15 2020
After 10 months of extensive negotiations, Cerrado Gold is pleased to announce that it has closed the US$45 million acquisition of Minera Don Nicolas and its namesake mine in Santa Cruz, Argentina.
The MDN Mine is a new operating mine that is located in the Deseado massif; a prolific region for large, high grade epithermal systems and mines (Anglo Gold Ashanti, Newmont GoldCorp, Yamana).
Cerrado anticipates an approximate 7 year mine life with 50,000 ounces per year of gold production at an AISC of sub US$1,000 as a base case. Cerrado sees significant growth potential.
Cerrado has designed an optimization program that would see a significant increase in grade, ounces, production and lower unit costs in the next year, generating substantial free cash flow.
Cerrado sees tremendous synergies in combining the growth of a very exciting new operating mine with strong cash flow growth and a very significant exploration opportunity.
Combined, the objective for Cerrado's two assets is to become a low cost Intermediate Producer within a very modest timeframe.
It is Cerrado management's view that the acquisition should add significant NPV to Cerrado shareholders on a non dilutive basis.
Cerrado will hold a conference call on Thursday March 19th at 11am EDT to discuss the acquisition and provide a general update (see attached press release for details).
Once again, we thank you for your strong support during this very difficult operating environment.
We would welcome any enquiries that you may have.
CEO & Co-Chairman