Mineral & Financial Invest. Limited Investment Update: Ascendant's Redcorp Interest (7420M)
25 Maggio 2022 - 12:00PM
UK Regulatory
TIDMMAFL
RNS Number : 7420M
Mineral & Financial Invest. Limited
25 May 2022
MINERAL & FINANCIAL INVESTMENTS LIMITED
Investment Update: Ascendant's Interest in Redcorp Increased To
50% By Paying additional US$1.0M & Completing US$9.0M On Lagoa
Salgada Project
HIGHLIGHTS:
-- Ascendant Paid M&FI US$1.0M and Completed US$9.0M of
Project Expenditures on The Lagoa Salgada Project
-- First Phase of the 2018 Earn-In Agreement Fulfilled and
Ascendant's Effective Interest in Lagoa Salgada Increases from 25%
To 50%
-- Total Payments Received to Date from Ascendant, Excluding
Project Expenditures, Totals US$5.95M
-- Ascendant Expects to Pay an Additional US$2.5M By December 22, 2022, to M&FI
GEORGE TOWN, CAYMAN ISLANDS, May 25, 2022 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the
"Company") is pleased to report an investment update from its
investment in Redcorp Empreedimentos Mineiros Lda. Ascendant
Resources (ASND-TSX) ("Ascendant") has completed more than US$9.0M
of project related expenditures on the Lagoa Salgada Project and
paid TH Crestgate, a wholly owned subsidiary of M&FI, an
additional US$1.0M on May 24, 2022. This thereby fulfills the first
phase of the earn-in conditions to increase its effective ownership
interest from 25% to 50% in the Lagoa Salgada VMS project (the
"Project") in Portugal. Ascendant expects to fully satisfy the
conditions of the Earn-In agreement and to increase its stake in
the Project to 80% by year end, further updates will be provided at
that time.
Jacques Vaillancourt, Mineral and Financial Investment Limited's
President & CEO stated - "We are thrilled by the outcomes of
the development work conducted at Lagoa Salgada since Ascendant's
involvement through its earn-in agreement reached in August 2018
with TH Crestgate, now a wholly owned subsidiary of M&FI. On
the exploration front, we believe the yield of tonnage to resources
has been exceptional which suggests significant resource growth
still to come and on the technical front we are seeing better
results than initially expected across the board. We remain
optimistic that Lagoa Salgada will become a world class
project."
Summary of Transaction
As set out in the announcement of August 2, 2018, Ascendant has
the option to earn an additional 30% (totaling an 80% effective
interest in the Project), by completing a feasibility study by
December 22, 2022 and making a final payment of US$2.5 million to
TH Crestgate. Ascendant have indicated they intend to progress that
study, but at this stage there can be no guarantee that it will
complete.
Ascendant originally paid a total of US$2.45M in cash and shares
to purchase 25% of Redcorp. Since that date, Ascendant has made
further cash payments of US$3.5M to TH Crestgate and incurred
US$9.0M of project expenditures on Redcorp and the Lagoa Salgada
Project, bringing their investment for 50% of Redcorp to US$14.95M.
Accordingly, with immediate effect, Ascendant now holds 50% of the
Lagoa Salgada project.
Additional Update
As previously reported on April 4, 2022, the feasibility study
at the Project has now commenced. This study follows the completion
of a NI 43-101 Preliminary Economic Assessment ("PEA") entitled "NI
43-101 Technical Report and PEA for the Lagoa Salgada Project", on
September 13, 2021 (the "PEA Announcement"). The PEA is available
on the Company's website and SEDAR. The PEA highlights a potential
low capital-intensive project (a proposed Capex of US$132 million)
with a pre-tax Net Present Value(@8%) of US$341 million and an IRR
of 68.2% at conservative long term metal prices, further details of
the PEA and the underlying assumptions behind the calculations are
set out in the PEA Announcement. The PEA proposes a low capex, low
operating cost, high margin underground mining operation with
strong economics and the opportunity for significant benefit to the
Company and the local stakeholders, it should also boost Portugal's
economy through exports, taxes and local employment.
FOR MORE INFORMATION:
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
Katy Mitchell and Ben Good, WH Ireland Limited +44 207 220 1666
Jon Belliss, Novum Securities Limited +44 207 399 9400
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION (EU) NO . 596/2014 AS IT FORMS PART OF
UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018, AS AMENDED . UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
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