Royalty Agreement Secures Funding for Cuiú Cuiú Gold Project in Brazil

Cabral Gold Inc. (TSXV: CBR) is a junior resource company focused on identifying, exploring and developing gold properties in Brazil. Its flagship project is the Cuiú Cuiú gold district located in the Tapajós Region of northern Brazil.

Osisko Gold Royalties Ltd (TSX & NYSE: OR) is a leading intermediate precious metal royalty company focused on the Americas. Osisko holds a North American-focused portfolio of over 165 royalties, streams and precious metal offtakes.

Cabral has entered into a royalty agreement with Osisko, whereby Osisko will purchase a 1% net smelter return (NSR) royalty on the Cuiú Cuiú gold project for $5 million. The royalty applies to the area containing the existing 604,000 ounce indicated resource and 534,500 ounce inferred resource, as well as the surrounding exploration lands.

The deal provides Cabral with funding to accelerate ongoing pre feasibility studies on the project. It also gives Cabral strategic flexibility regarding future financing options for potential mine development. Osisko's investment is a strong endorsement of the project from a leading royalty company.

The royalty financing is non-dilutive, allowing Cabral to advance Cuiú Cuiú without further shareholder dilution. It provides a cash injection to continue exploration and development studies that can unlock value at the project. Osisko's technical expertise provides third-party validation of the project's potential. The deal enhances Cabral's financial position and flexibility regarding future mine financing.

With gold resources of over 1.1 million ounces outlined and located in a historic gold mining district, Cuiú Cuiú offers investors near-term resource growth and development potential. The Osisko deal is a value-accretive milestone that improves the investment case. Investors may want to keep a close eye on Cabral as studies advance towards a potential construction decision over the next 12-18 months.