Ascendant Resources and Cerrado Gold Announce Business Merger

Ascendant Resources Inc. has agreed to a business combination with Cerrado Gold Inc., offering a share consideration of C$0.06 per Ascendant Share, which is a 14% premium based on their 30-day VWAPs as of January 30, 2025. This merger promises assured funding for Ascendant's Lagoa Salgada Project and access to Cerrado's cash position of US$21M. Cerrado will also absorb US$5.1M of Ascendant's debt.

Cerrado will acquire all Ascendant shares at an exchange ratio of 1 Cerrado share per 7.8 Ascendant shares. Post-merger, Cerrado's shareholders will own 79% of the combined entity. The merged company will trade under TSXV:CERT. Furthermore, Sprott is converting up to C$2.4 million of debt into shares, supporting the merger.

This merger is projected to reduce equity dilution for Ascendant and foster cash flow production, leading to enhanced shareholder value. Ascendant and Cerrado's boards have unanimously approved the merger.