07:26 AM EDT, 10/30/2024 (MT Newswires) -- Cerrado Gold ( CRDOF ) said Wednesday that it received a notice from Hochschild Mining subsidiary Amarillo Mineracao do Brasil to exercise its option to acquire the Monte Do Carmo project in Brazil for US$60 million.

Cerrado said it previously received US$15 million after granting the option. The transaction is expected to close Nov. 5.

The company said it will use the proceeds to grow its Minera Don Nicolas gold mine in Argentina, complete a feasibility study on the Mont Sorcier iron ore project in Quebec, improve its balance sheet and pursue other growth opportunities.

"Cerrado is now favorably positioned as one of the few well-funded, cash flow positive, stable junior producers in the sector," CEO and Chairman Mark Brennan said.

Cerrado's share price rose 7.8% yesterday to $0.415 on the TSXV.