REG - Mineral & Financial - Investment Update: Ascendant

Mineral & Financial InvestmentsAnnouncement

06/12/2023 07:00

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RNS Number : 7942V  Mineral & Financial Invest. Limited  06 December 2023

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant Appoints Banco Santander S.A. as Lead Arranger
for Proposed Export Credit Agency Supported Project Financing at Lagoa Salgada
Project

 

HIGHLIGHTS:

·    Ascendant appoints Banco Santander S.A. as Sole Mandated Lead
Arranger for the proposed Lagoa Salgada Polymetallic project ("Project")
financing.

·    The funding would be up to US$158m in potential project financing
with a potential term of 7.5 years, for the Project.

·    Proposed funding would cover 70% of the projects expected capital
requirement.

·    The UK Export Credit Agency is expected to support the project
financing.

·    Export Credit Agency Support provides political and commercial
guarantees to project lenders, thus lowering project risk to the lender and
resulting in lower costs of capital.

 

Camana Bay, Cayman Islands - 6 December 2023 - Mineral and Financial
Investments Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is
pleased to provide an update on its investments in Redcorp Empreedimentos
Mineros Lda ("Redcorp") and Ascendant Resources Inc. ("Ascendant") which are
developing the Lagoa Salgada Polymetallic Project in Portugal. The Project is
being managed by Ascendant. M&F owns a conditional 20% carried interest in
Redcorp and Ascendant owns the balance (please see the announcement dated 28
November 2022 for further details). Ascendant has informed M&F that
further to the announcement on 18 October 2023, that in relation to the Export
Credit Agency ("ECA") Supported Project financing of up to US$158 million,
Ascendant has appointed Banco Santander, S.A.  ("Santander") as Mandated Lead
Arranger ("MLA") for the Lagoa Salgada Project in Portugal.

As announced on 5 September 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 MLA for Ascendant's projects. As a result of this competitive process the
Directors understand that Ascendant received several compelling bids. Together
with Ascendant's advisors the bids were evaluated based on ECA project finance
experience, execution capabilities and ultimately the financial terms for the
project financing. Santander is a well-respected global institution with
extensive experience in ECA financing, a significant presence in Portugal and
a longstanding relationship with UKEF. The Directors understand that this,
together with the competitive and compelling terms presented for the financing
were the basis for Ascendant awarding the mandate to Santander.

The UK Export Credit Agency ("UKEF") backed facility is expected to be for up
to US$158 million on a non-recourse project financing basis for a total tenor
of 7.5 years; but there can be no guarantee this will be achieved.  If
secured this funding would cover 70% of the expected project capital
expenditures for the Lagoa Salgada Project.

As is common for ECA supported Project Financing, UKEF provides political and
commercial guarantees to project lenders, thereby lowering the overall project
risk to the lender and resulting in lower costs of capital. This reduces the
cost of debt to Ascendant whilst at the same time extending tenors and
creating debt capacity not normally available in the commercial bank market.
To secure such support, project developers commit to a pre agreed level of
procurement from UK based organizations for goods, services and materials.
UKEF's mandate is to promote and support exports from British companies in the
global market.

The appointment of the MLA is on an exclusive basis and sets out the
indicative terms upon which the proposed ECA financing is expected to be
based.  For the avoidance of doubt, the terms are purely indicative and do
not constitute an offer of finance or a legally binding commitment of any kind
to provide finance. The provision of any binding offer is subject to, among
other things: credit and other internal approvals; E&S approvals;
satisfactory due diligence and documentation; satisfaction of Know Your Client
("KYC") requirements and other terms customary for this type of transaction.

The conclusion of Project financing remains subject to the granting of
construction permits, due diligence, amongst other requirements, the
appointment of Santander as MLA is a significant milestone for the Project
financing of the Lagoa Salgada Project. At Lagoa Salgada, work continues to
advance the permitting over the coming months. Redcorp and Ascendant are
preparing the issuance of its 43-101 Feasibility Study for the Lagoa Salgada
project and once completed will commence comprising of a formal due diligence
period before an anticipated final binding offer and documentation.

Further updates will be provided as required.

About Banco Santander S.A.

Banco Santander, S.A is a Spanish multinational financial services company
based in Madrid and Santander in Spain. Additionally, Santander maintains a
presence in all global financial centers as the 17th-largest banking
institution in the world. Although known for its European banking operations,
it has extended operations across North and South America, and more recently
in continental Asia. It is considered a systemically important bank by the
Financial Stability Board.

Santander has been designated as a Significant Institution since the entry
into force of European Banking Supervision in late 2014, and consequently is
directly supervised by the European Central Bank.

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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