Lagoa Salgada

Advanced-stage polymetallic VMS development project in the Iberian Pyrite Belt, 80 km from Lisbon, Portugal. 7,209-hectare concession. Cerrado holds 80% via Redcorp - Empreendimentos Mineiros (held through Ascendant Resources, acquired May 16, 2025 via plan of arrangement). Remaining 20% held by Mineral & Financial Investment AG (M&FI), subject to consortium agreement with EDM (Portuguese state mining agency) which has option to participate in up to 15%. Definitive mining concession contract signed October 28, 2021 with DGEG; carries 3% royalty on certain mine products (2/3 to DGEG, 1/3 to Municipalities). 2023 NI 43-101 Feasibility Study outlined after-tax NPV of US$147 million, IRR 39%, generating ~$75M per annum free cash flow over first 5 years. Polymetallic mineralization: gold, silver, zinc, copper, lead, tin; precious metals account for ~34% of NSR. Optimized Feasibility Study (OFS) in progress with improved metallurgical recoveries (Gossan: Pb 45%, precious metals 50-60%); Dense Media Separation testing on Stockworks zone showed ~40% mass reduction with only ~5% contained metal loss. Sprott metals stream agreement and Ascendant secured note in place. January 2026: unfavourable EIA opinion received from Portuguese Environment Agency (APA); Redcorp filed for court injunction February 11, 2026 which was accepted, suspending APA opinion pending definitive court decision. Project viability and concession contract at risk.