03:03 PM EDT, 10/30/2024 (MT Newswires) -- Cerrado Gold ( CRDOF ) was at last look up more than 8% on Wednesday afternoon amid news that it will use some of the funds from selling its Monte Do Carmo project in Brazil to complete a feasibility study for its Mont Sorcier Iron Ore Project.

Chibougamau Independent Mines ( CMAUF ) and Globex Mining Enterprises ( GLBXF ) hold Gross Metal Royalties of 2% (all minerals) and 1% (iron and all minerals excluding vanadium) respectively on the project, according to the statement. Globex also holds 11 million shares of Electric Royalties ( ELECF ) which has a 1% Gross Metal Royalty on vanadium production from the property.

Earlier on this Wednesday the company said 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 added 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," chief executive Mark Brennan said.

Price: 0.45, Change: +0.04, Percent Change: +8.43