Cerrado Gold Announces Conclusion of Gold Hedging Program at Its Minera Don Nicolas Mine in Argentina and a Proposed Normal Course Issuer Bid for Its Shares

Core Viewpoint - Cerrado Gold Inc. has completed its gold hedging program, allowing the company to sell gold at near-spot prices, which is expected to enhance profitability and free cash flow [1][4]. Group 1: Gold Hedging Program - The gold hedging program had a ceiling of $3,250/oz and was concluded with the final shipment on January 15, 2026 [1]. - The company will now sell 100% of its gold production at near-spot prices, improving its financial performance [1][4]. Group 2: Normal Course Issuer Bid (NCIB) - Cerrado has proposed a normal course issuer bid to purchase up to 6,794,790 common shares, representing approximately 5% of the total shares outstanding as of January 16, 2026 [2][3]. - The management believes that the current share price is significantly undervalued compared to the company's asset value [2][3]. Group 3: Financial Strategy and Shareholder Benefits - The use of excess liquidity to buy back shares is expected to be accretive to net asset value per share, benefiting shareholders by increasing their ownership proportion [3]. - The company aims to return capital to shareholders while maintaining a strong cash balance and continuing growth initiatives [4]. Group 4: Company Overview - Cerrado Gold is a Toronto-based gold production, development, and exploration company, owning the Minera Don Nicolás and Las Calandrias mine in Argentina [5]. - The company is also developing the Lagoa Salgada VMS project in Portugal and the Mont Sorcier Iron project in Canada, indicating a diversified portfolio [5][9]. Group 5: Operational Focus - In Argentina, the company is optimizing operations at Minera Don Nicolás and increasing production at the Las Calandrias project [6]. - The Lagoa Salgada project is noted for its high-grade polymetallic potential, with significant exploration opportunities [7][8].