Cerrado Gold Inked Agreement to Acquire Ascendant Resources Inc
Mining News | 2025-02-04 11:17:12
Upon closing of the deal, Ascendant shareholders would own approximately 21% of Cerrado.
By Paul Ploumis
SEATTLE (Scrap Monster): Cerrado Gold, a gold mining and exploration firm based in Toronto, Canada, has agreed to buy all of the outstanding shares of Ascendant Resources Inc. that it does not currently hold. Through the agreement, Cerrado Gold will acquire an 80% stake in the Portuguese project Lagoa Salgada.
As per the agreement, Cerrado will give Ascendant owners one common share for each 7.8 shares purchased. About 21% of Cerrado would be owned by Ascendant stockholders if the purchase closed.
Mark Brennan, CEO of Cerrado Gold, commented on the deal, saying that the purchase of Lagoa Salgada is a great chance for the business to expand its asset portfolio with a high-quality, reasonably priced asset with significant cash flow potential. According to him, the management is fully aware of Lagoa Salgada's current worth and substantial near-term exploration potential.
Lagoa Salgada is a low-cost zinc-lead-copper VMS project located in the northwestern section of the Iberian Pyrite Belt. The Portuguese Geological Survey made the initial discovery of the deposit in 1992. Since then, a number of businesses, notably Rio Tinto, have conducted exploration work on the project. In 2018, Ascendant purchased the project's majority stake.
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