Vancouver, British Columbia–(Newsfile Corp. – July 28, 2023) – Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) (“Cabral” or the “Company“) is pleased to announce that it has received the second and final US$2.5 million tranche relating to the royalty agreement with Osisko Gold Royalties Ltd. (“Osisko”) (OR: TSX & NYSE) announced on July 12, 2023 pursuant to which Osisko agreed to purchase a 1% net smelter return (“NSR”) royalty on the Cuiú Cuiú gold project for a total cash consideration of US$5 million.
Cuiú Cuiú Project
Cuiú Cuiú is an advanced gold exploration and development project located in the state of Para, Brazil, immediately adjacent to the Tocantinzinho gold project which is currently under construction.
The Cuiú Cuiú project hosts NI 43-101 compliant mineral inventory of 21.6 M @ 0.87 g/t gold (604,000oz) in the Indicated Resources category and 19.8 Mt @ 0.84 g/t gold (534,500 oz) in the Inferred Resources category, as per the 43-101 technical report dated October 12, 2022.
A Prefeasibility Study considering potential exploitation of weathered oxide saprolitic gold mineralization is currently being undertaken by Ausenco. If positive, the study should pave the way for a construction decision for trial mining and heap-leach processing of the near-surface oxide gold mineralization at Cuiú Cuiú.
Details of the Transaction
Cabral has granted Osisko a 1% NSR royalty from the production of all products from the Cuiú Cuiú property. The total consideration is US$5 million which has been paid in two tranches; US$2.5 million was paid on closing and the remaining US$2.5 million was paid on July 26, 2023 following the registration of certain security pledges.
Following the completion of a Feasibility Study, Cabral will pay Osisko US$250,000 on the date thereof and each subsequent anniversary of said completion by way of an advance payment, until the commencement of commercial production. These payments shall be credited against future royalty payments due under the royalty agreement.
The terms of the transaction allow Cabral to use a portion of the proceeds for general working capital purposes.
The parties have registered a pledge of shares in Cabral Gold B.C., and Cabral’s wholly-owned subsidiary in Brazil. The transaction also grants Osisko certain additional rights on future royalty and stream financings.
About Cabral Gold Inc.
The Company is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Two main gold deposits have so far been defined at the Cuiú Cuiú project which contains National Instrument 43-101 compliant Indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and Inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz) as per the 43-101 technical report dated October 12, 2022.
The Tapajós Gold Province is the site of the largest gold rush in Brazil’s history which according to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil) produced an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings in the Tapajós and produced an estimated 2Moz of placer gold historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and Chief Executive Officer
Cabral Gold Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “expected” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/175236