Cerrado Gold Secures Injunction for Lagoa Salgada Project in Portugal

Cerrado Gold's wholly-owned subsidiary, Redcorp, has been granted injunctive relief in connection with its Lagoa Salgada project in Portugal, challenging an unfavorable opinion issued by the Portuguese Environmental Agency (APA). The injunction, granted on June 17, 2026, effectively suspends the APA's opinion and ensures that the concession contract for the Lagoa Salgada project remains valid and in good standing. This development marks a significant step for Cerrado Gold, reducing uncertainty surrounding the project's future.

The process began in January 2026 when Cerrado Gold announced that the Environmental Impact Assessment (EIA) for Lagoa Salgada was considered tacitly approved due to the expiry of statutory deadlines. However, the Portuguese Environmental Agency subsequently issued an unfavorable opinion on this EIA. Cerrado Gold pursued legal action against this adverse opinion, leading to the current injunction. The company had previously highlighted that 17 out of 17 members of the technical evaluation committee had approved the project, suggesting procedural irregularities in the subsequent unfavorable decision.

The Lagoa Salgada project is a high-grade polymetallic Volcanogenic Massive Sulfide (VMS) deposit situated in Portugal's Iberian Pyrite Belt. It is known to contain valuable metals such as zinc, copper, lead, tin, silver, and gold. Recognized by the Portuguese Government as a 'Project of National Interest' (PIN), the mine holds strategic importance for its potential contribution to Europe's critical raw material supply. Cerrado Gold, through Redcorp, maintains an 80% interest in the project.

The securing of this injunction can be seen as a crucial signal for investor confidence in Portugal's mining sector, particularly concerning critical mineral projects. Previous uncertainties surrounding the EIA process and the APA's unfavorable opinion had caused concern among investors. This latest decision sets a positive precedent regarding the functionality of the legal framework and the effectiveness of companies' recourse mechanisms.

Mark Brennan, CEO and Chairman of Cerrado Gold, expressed satisfaction that the court sided with the company's position. Brennan stated that the company continues to collaborate with relevant stakeholders in Portugal to find a resolution that will lead to the permitting and construction of the Lagoa Salgada mine. The company anticipates completing a new EIA and detailed engineering by year-end, with construction expected to commence around this time next year. These advancements are expected to enhance the project's economic prospects and contribute to Cerrado Gold's long-term growth strategy.