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

Mineral & Financial InvestmentsAnnouncement

19/09/2024 07:00

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RNS Number : 7753E  Mineral & Financial Invest. Limited  19 September 2024

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant Resources/ Redcorp to Integrate Artificial
Intelligence for exploration at Lagoa Salgada in Partnership with the
University of Évora, Portugal

 

HIGHLIGHTS:

·   Ascendant announces partnership to integrate hyperspectral technology,
Artificial Intelligence ("AI") and machine learning for exploration as part of
the Innovative HYPERMETAL Project.

·   HYPERMETAL project is designed to revolutionize the efficiency and
precision of polymetallic mineral exploration by enhancing the
characterization of deposits.

·   Redcorp advises program to be funded via application for Portugal 2030
Funding under the New Technologies Specialization Program.

·   Redcorp (in agreement with Ascendant), grants an extension to EDM to
acquire up to a 15% interest in the Lagoa Salgada Project

Camana Bay, Cayman Islands - 19 September 2024 - 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).
The Project is 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).

Redcorp, has entered into a partnership with the University of Évora,
Portugal, in a joint application for funding under the Portugal 2030 program,
in the area of New Technologies Specialization. The funding will support the
development of the groundbreaking HYPERMETAL project, which aims to integrate
advanced hyperspectral technology, AI and Machine Learning into traditional
mineral exploration methods.

The HYPERMETAL project is designed to revolutionize the efficiency and
precision of polymetallic mineral exploration by enhancing the
characterization of deposits. By reinterpreting historical drill cores and
combining traditional methods (Geochemistry and Mineralogy) with hyperspectral
analyses, the project should generate an advanced Digital Twin of the orebody,
significantly improving the understanding and development of new exploration
targets through AI and machine learning systems, to continue to expand the
known mineralization at Lagoa Salgada.

One of the Hypermetal project's key milestones will be the execution of a new
drill hole, which will be studied using both conventional methodologies and
hyperspectral technology. Through the application of Machine Learning and AI,
the collected data will be classified to map ore occurrences, hydrothermal
alteration halos, and key lithologies. The result will be a cutting-edge
digital platform capable of processing hyperspectral images and generating
precise visualizations of ore distribution and alteration zones throughout the
drill hole.

Jacques Vaillancourt, President & CEO of M&F stated, "We understand
that the HYPERMETAL project and the integration of cutting-edge AI
technologies represents a leap forward in mineral exploration technology.
Redcorp's partnership with the University of Évora reflects a commitment to
embracing new technologies, such as AI, and fostering innovation within the
mining sector, enhancing Redcorp's exploration capabilities which we
understand should contribute to the successful development of Lagoa Salgada".

Redcorp also advises that the joint application to the Portugal 2030 program
(between Redcorp and the University of Evora), reinforces Redcorp's dedication
to leveraging innovative technologies that align with the European Union's
goals for sustainability and economic growth. Redcorp anticipate receiving the
results of its application by the end of November 2024.

The Company is advised that the Portugal 2030 financial framework is
structured around 12 distinct programs, with Compete 2030 focusing on
innovation and digital transformation. This program is backed by €3.9
billion in funding from the European Regional Development Fund ("ERDF") and
the European Social Fund Plus ("ESF+") and aims to drive development in
Portugal's less advanced mainland regions and its Autonomous Regions. Its key
goals include boosting innovation, competitiveness, energy transition, and
workforce skills. Under the "A More Competitive Portugal" initiative, the
program emphasizes digitalization, research, innovation, and SME growth. The
"A Greener Portugal" goal promotes decarbonization and renewable energy within
businesses, while the "A More Social Portugal" objective helps workers and
companies adapt to evolving circumstances.Compete 2030 aims to leverage
available resources in a streamlined, collaborative, and effective way,
adhering to principles of transparency, efficiency, and results-oriented
strategies. The Portugal 2030 Partnership Agreement was officially approved on
July 12, 2022 and signed two days later by the Portuguese Government and the
European Commission, with all programs receiving approval by December 15,
2022.

EDM Option Extension

In addition, the Company has been notified that Empresa de Desenvolvimento
Mineiro ("EDM"), the Portuguese State Mining Development Agency, has been
granted an extension to the term of its option agreement for up to a 15%
interest in the Lagoa Salgada Project (the "Project"). The extension has been
granted by Ascendant's  80% owned subsidiary, Redcorp, and extends the
deadline for exercise from September 30, 2024 to 120 days from the date on
which the following conditions are satisfied: (i) issuance of the
Environmental Impact Statement on the Project, and (ii) completion of the
optimization study of the Project's feasibility study clarifying technical and
metallurgical matters (the "EDM Option").

If EDM exercises the EDM Option, then Ascendant is entitled to exercise call
options causing the transfer from the Company of the 20% Carried Interest
("CI") free carried interest quotas of the Lagoa Salgada concessionaire,
Redcorp, to Ascendant such that Ascendant would continue to own an 80%
interest in the Project and MF&I would hold a net 5% CI. M&FI has the
right, but not the obligation, to exercise a put option commencing on the date
on which EDM makes its election and terminating four (4) months thereafter,
for Ascendant to purchase all of the Redcorp quotas then held by M&FI. The
put price would be an amount in US dollars, payable in cash, equal to 5% of
the post-tax net present value (at a 10.5% discount rate) of the Project
provided in the then current feasibility study.

If the EDM Option is fully exercised and the Put Option is also exercised,
Ascendant would hold an 85% interest in the Project and EDM would hold a 15%
fully contributing interest, with each party required to contribute pro rata,
subject to standard dilution clauses.

About the University of Évora (Geosciences Department)

The Department of Geosciences at the School of Science and Technology,
University of Évora, is a scientific and educational unit dedicated to
ongoing research, teaching, community outreach, and offering specialized
services to the public.

Review of Technical Information

The scientific and technical information in this press release has been
reviewed and approved by Joao Barros, BSc (Engineering), MSc (Geology), who
has more than 18 years of relevant experience in the field of activity
concerned. Mr. Barros is a Member of the Portuguese Engineers Association. Mr.
Barros is employed by Redcorp Empreedimentos Mineiros, Lda., a 20% owned
subsidiary of M&F, and has consented to the inclusion of the material in
the form and context in which it appears.

The scientific and technical information contained in this release in relation
to metallurgical test work has been approved and verified by Mr. David Castro
López (MIMMM), who serves as Process Engineer at Minepro Solutions and is a
"Qualified Person" in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects.

 

FOR MORE INFORMATION:

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

Katy Mitchell and Sarah Mather, Zeus Capital
Limited                   +44 203 829 5000

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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