Cerrado advances with lender search

The search is part of the UK Export Finance (UKEF)-supported export credit facilities for the Monte Do Carmo gpñd project in Tocantins, Brazil and the Mont Sorcier iron ore and vanadium project in Quebec, Canada. Selection is expected to be completed by the end of September.

UKEF has expressed an interest to provide support for up to US$190 million for Monte Do Carmo and up to $420 million for Mont Sorcier, representing 70% of total capital expenditure, interest payable during construction, the political risk insurance premium as well as other approved expenditures for each project.

"We are very pleased to be moving forward to the next stage of determining project financing support to bring both our Monte Do Carmo and Mont Sorcier projects into development," said Cerrado Gold chair and chief executive Mark Brennan.

UKEF is a department of the UK Government and is the UK's official Export Credit Agency.

Monte do Carmo is due to produce 131,000ozpa of gold for eight years at an all-in sustaining cost of US$612/oz.

Cerrado filed its License of Installation application with the state environmental regulatory authority in August to develop the Serra Alta deposit at Monte Do Carmo and is updating the completion schedule for its feasibility study.

Cerrado aims to organically grow its gold production from 50,000ozpa to over 200,000ozpa over the next four years. It produced 12,336oz from its Don Nicolas Mine in Santa Cruz, Argentina in the June quarter and poured its first gold from a new heap leach gold production project at the Las Calandrias area in Argentina in July.

Mont Sorcier near Chibougamau aims to produce 104Mt of iron ore over 21 years at 5Mtpa.

Shares in Cerrado Gold are trading at 61c, valuing the company at C$59 million.