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Mineral & Financial Investments Ltd on Monday noted developments in the financing package for the Lagoa Salgada VMS project in Portugal.
M&FI is a Cayman Islands-based investment company.
M&FI said Toronto-based mining company Ascendant Resources Inc has entered into a $15 million metals stream agreement with Sprott Private Resource Streaming and Royalty Corp to complete a feasibility study at the Lagoa Salgada VMS project, in which M&FI holds a stake.
Mineral & Financing shares were up 43% to 17.50 pence on Monday afternoon in London.
The agreement provides Sprott with the sale and delivery of 1.8% of all metals produced from the project at a rate of 15% of the market price for gold, until the delivery of 45,000 gold equivalent ounces. At this point, the rate will be increased to 75% of the market price.
The Lagoa project is jointly held by the company’s wholly-owned subsidiary Mineral & Financial Investments AG, Redcorp Empreedimentos Mineiros Lda, and Ascendant Resources, who is also operating the project.
Ascendant will use the proceeds from the agreement to complete the ongoing 43-101 compliant feasibility study for the project, advance permitting activities, as well as for Ascendant’s general corporate and working capital purposes.
‘We believe Ascendant has made tremendous progress throughout its technical work and studies for the feasibility study at Lagoa Salgada which leads us to expect to see a very robust outcome. This should allow Ascendant to further advance the development of the project to a construction decision. A construction decision is expected to follow closely behind the completion of the feasibility study,’ President & Chief Executive Jacques Vaillancourt said.
This will allow Ascendant to pay $2.5 million related to the earn-in agreement, which is due to M&FI in December, Vaillancourt noted.
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