REG - Mineral & Financial - Investment Update: Ascendant/Redcorp

Mineral & Financial InvestmentsAnnouncement

05/07/2023 11:00

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RNS Number : 0587F  Mineral & Financial Invest. Limited  05 July 2023

MINERAL AND FINANCIAL INVESTMENTS LIMITED

 Investment Update: Ascendant/Redcorp Announce Potential Export Credit Agency
Support for Project Finance at the Lagoa Salgada Project in Portugal

 

Highlights:

·    UKEF, the UK Export Credit Agency, selected from group of 4 compliant
Expressions of Interest

·    Potentially up to US$190 million in Export Credit Agency ("ECA")
support via long term ECA Project Finance to cover up to 70% of pre-production
costs plus additional support to cover Interest During Construction and
Insurance Premium Costs

·    UKEF's Expression of Interest will encourage a UK-led sourcing
strategy while allowing flexibility for sourcing from other countries. Support
available subject to standard project finance terms and successful due
diligence.

·    Process to appoint Mandated Lead Arranger(s) to commence shortly.

 

Camana Bay, Cayman Islands - 5 July 2023 - Mineral and Financial Investments
Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") announces that its
joint venture partner, Ascendant Resources Inc. ("Ascendant"), has received
and accepted an Expression of Interest ("EOI") from UK Export Finance ("UKEF")
to support a potential export credit facility for the Company's Lagoa Salgada
Project ("Lagoa Salgada" or the "Project") located in Portugal.

The EOI provides support for up to US$190 million for the Project representing
70% of total capital expenditure, interest payable during construction, the
political risk insurance premium as well as other approved expenditures for
the Project.

MAFL currently has a 50% interest in the Lagoa Salgada project through its
holding in Redcorp Empreendimentos Mineiros Lda, with Ascendant holding the
other 50% although Ascendant has an earn-in opportunity to increase its
interest in the project to 80% of the Lagoa Salgada project through the
completion of a feasibility by the agreed deadline of 3 August 2023.

Jacques Vaillancourt, President & CEO of M&FI commented "We are very
pleased with Ascendant's progress to possibly partner with UKEF to bring Lagoa
Salgada into development. Whilst there can be no guarantee that this ECA will
complete, we believe the support of the UK Government and UKEF is a testament
to the attractiveness of the Lagoa Salgada Project, and we look forward to
providing more updates, as Ascendant works with UKEF and any future appointed
MLA to complete project financing."

UKEF is a department of the UK Government and is the UK's official Export
Credit Agency ("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.

UKEF's engagement with the project is at an early stage. UKEF's EOI is not a
legally binding commitment and is subject to a series of standard project
finance terms and due diligence, including, among others, suitable structured
offtake contracts, the successful completion of the Definitive Feasibility
Study (DFS), and an Environmental and Social Impact Assessment (ESIA) to
Equator Principles. The EOI provides an indication of currently available
country limits, an indication of the attractiveness of the project, and it
covers, in principle, the level of financial support, their flexibility and
desired conditions.

UKEF's EOI is in line with the OECD Arrangements for Officially Supported
Export Credits and stipulates minimum UK content requirements whilst enabling
equipment to be sourced locally and from other countries.

As previously announced on April 17, 2023, Ascendant appointed SD Capital
Advisory Ltd and GKB Ventures Ltd ("S&G") to solicit interest for Export
Credit Agency backed Project Financing. As a result of this process Ascendant
received 4 expressions of interest from ECAs around the world. Ascendant also
received an expression of interest from an additional ECA on an untied basis
which may be used to complement UKEF support. The directors of MAFL are
pleased with the level of support and interest from the ECA market which
highlights the potential for success of Lagoa Salgada.

The Directors understand that Ascendant selected UKEF based on numerous
factors related to the terms of the Expression of Interest and unique aspects
of the capital spend at the Lagoa Salgada Project.

Together with S&G, Ascendant will now be soliciting interest from Project
Finance Banks to act as Mandated Lead Arranger ("MLA") for the transaction.
Ascendant has advised MAFL that they expect to appoint an MLA by the end of
July 2023. Once an MLA has been appointed, detailed due diligence will
commence with the aim of receiving final terms for the ECA backed Project
Financing at Lagoa Salgada towards the end of the year. Further updates will
be provided in due course as appropriate.

 

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

 

 

 

 

 

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