RE:RE:New Press Release - Cerrado Gold Announces Share Issuance To Sprott Streaming And Royalty Corp. This is probably the least worst of all solutions. Imagine what it would be like if Cerrado tried to raise capital in the market, without Sprott's support. It would be the short sellers who would get involved, by depreciating the SP upstream, by repaying from the shares acquired during the financing. In short, Sprott's presence increases the risks for short sellers, by limiting the increase in the float.
Otherwise, Cerrado obtained an operating income of US$1,304,000, despite depreciation of fixed assets of only US$1,000,000. Fortunately, Cerrado was able to recognize a foreign exchange gain, because the net result would be even more negative. That said, a foreign exchange gain does not generate cash, and Cerrado was unable to repay this interest.
Surprisingly, Cerrado decided to spread out his projects, BUT WITHOUT MONEY, to develop them. It's a bold strategy, which I don't understand.