RCS - Mineral & Financial - Investment Update: Redcorp/Ascendant Resources

Mineral & Financial InvestmentsAnnouncement

19/10/2023 07:00

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RNS Number : 5766Q  Mineral & Financial Invest. Limited  19 October 2023

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Redcorp/Ascendant Resources have Selected Bank to Act as
Mandated Lead Arranger for Non-recourse Project Financing for its Lagoa
Salgada Project in Portugal

 

HIGHLIGHTS:

·    Ascendant selected a Mandated Lead Arranger for Lagoa Salgada Project
in Portugal

·    On-boarding and formal engagement to be completed by Ascendant in
coming weeks.

·    UK Export Finance has expressed an interest to provide support for up
to US$190 million for the Lagoa Salgada Project, representing 70% of total
capital expenditures.

Camana Bay, Cayman Islands - 18 September 2023 - Mineral and Financial
Investments Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is
pleased to provide an update of its investment in Redcorp Empreedimentos
Mineros Lda ("Redcorp"). Redcorp is developing the Lagoa Salgada Polymetallic
Project in Portugal, which is being funded and guided by Ascendant Resources
Inc ("Ascendant"). M&F owns a conditional 5% to 20% Carried Interest in
Redcorp and Ascendant owns the balance (see the announcement dated 28 November
2023 for further details).

As announced on September 5(th) 2023, Ascendant together with its advisors, SD
Capital Advisory Ltd and GKB Ventures Ltd ("S&G"), initiated a tender
process to solicit interest from several global Project Finance Banks to act
as Mandated Lead Arranger ("MLA") for the Company's ECA supported Non-Recourse
Project Financing, supported by the UK Export Finance agency ("UKEF").

The Directors understand that the tender process resulted in Ascendant
receiving several compelling bids. The Directors are advised thatAscendant has
now evaluated the bids based on experience, execution capabilities and
financial terms and has now appointed a bank with extensive experience in ECA
financing, a strong position and understanding of Portugal, a longstanding
relationship with UKEF and which has presented competitive terms for the
financing. The Directors are further advised that Ascendant is currently
undertaking a review of a formal engagement letter with the chosen ank and
will announce terms once signed. Once engaged, it is understood the next phase
of the process will comprise a formal due diligence period before final
binding offers and documentation which are expected to be completed in 2Q
2024.

As outlined previously, UKEF has expressed an interest to provide support for
up to US$190 million for the Lagoa Salgada Project, representing 70% of total
capital expenditure, interest payable during construction, political risk
insurance premium as well as other approved expenditures for each project.

UKEF is a department of the UK Government and is the UK's official ECA. UKEF
operates under an Act of Parliament to support UK exports, predominately
through the provision of 100% unconditional guarantees backed by the UK
Government.

Jacques Vaillancourt, President & CEO of M&F stated, "After receiving
several compelling offers, Ascendant are confident that they have selected a
strong partner to lead the Project Financing and help bring the project
towards a fully funded construction decision in Q2 2024".

There can be no guarantee that any transaction or fundraising will be
concluded, further announcements will be made as required.

 

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments
Ltd.                        +44 780 226 8247

Katy Mitchell and Sarah Mather, WH Ireland
Limited                    +44 207 220 1666

Jon Belliss, Novum Securities
Limited
+44 207 382 8300

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service (RIS), this inside information
is now considered to be in the public domain.

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