TIDMMAFL
RNS Number : 6232C
Mineral & Financial Invest. Limited
22 June 2021
MINERAL AND FINANCIAL INVESTMENTS LIMITED
US$1.0 Million Cash Payment Received from Ascendant
Resources
George Town, Cayman Islands - 22 June 2021 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the
"Company") is pleased to provide an update on its earn-in agreement
with Ascendant Resources in Redcorp Empreedimentos Mineiros Lda and
its 25Mt volcanic massive sulphide (VMS) polymetallic
Zinc/Lead/Copper/Silver/Gold Lagoa Salgada deposit located in South
Central Portugal. Today M&FI received a US$1.0 million payment
as part of the earn-in agreement it has with Ascendant Resources
Ltd.
M&FI President and CEO Jacques Vaillancourt stated
"Ascendant Resources have been an outstanding partner meeting every
payment and significantly expanding the projects size and scope
during a challenging time globally. We continue to believe that
this project will grow from its current size"
Summary of Ascendant Agreement
The following is a summary of the earn-in agreement (extracted
from the announced dated 2 August 2018):
"TH Crestgate (now MAFL's 100% subsidiary) and Ascendant
Resources Inc have entered into an agreement for the sale of 25% of
its 100% owned subsidiary Recdorp Empreedimentos Mineiros Lda and
to simulataneously enter into an Earn-in Option agreement.
In the first part of the transaction Ascendant acquired an
initial effective 25% interest for an upfront payment of US$2.45
million composed of US$800,000 in cash (US$400,000 on closing of
the transaction and US$400,000 on July 15, 2018) and US$1.65
million in Ascendant shares. The second part of the Agreement is an
Earn-in Option which has a minimum total value, if fully exercised,
of US$15.0 million. Earn-in transaction terms are as follows:
-- Ascendant has the right to earn a further effective 25%
interest via staged payments and funding obligations as outlined
below:
o Investing a minimum of US$9.0 million directly in the
operating company, Redcorp within 48 months of the closing date, to
fund exploration drilling, metallurgical test work, economic
studies and other customary activities for exploration and
development, and
o Making payments totaling US$3.5 million to Crestgate according
to the following schedule or earlier:
-- 6 months after the closing date: US$0.25 million (Dec 22,
2018 - Received)
-- 12 months after the closing date: US$0.25 million (June 22,
2019 - Received)
-- 18 months after the closing date: US$0.5 million (Dec. 22,
2019 - Received)
-- 24 months after the closing date: US$0.5 million (June 22,
2020 - Received)
-- 36 months after the closing date: US$1.0 million (June 22,
2021 - Received)
-- 48 months after the closing date: US$1.0 million (June 22,
2022)
-- Ascendant then has the option to earn an additional 30%,
totaling an 80% interest in Redcorp, the operating subsidiary, by
completing a Feasibility study within 54 months (Dec 22, 2022) and
making a further payment of US$2.5 million to Crestgate.
-- Ascendant will fund all development and future construction
costs and recoup Crestgate's share of investment through cash flow
until repaid.
-- First-Right of refusal, 'tag-along', 'drag-along' and other sale and exit provisions.
-- Additional terms as standard in such transactions.
-- The Redcorp board composition will be 50/50 to the full earn-in of 80%
-- Redcorp's operations will be led by an operating committee
composed by Ascendant Resources reporting to the Redcorp Board of
Directors."
For further information please see the announcement of 2 August
2018.
FOR MORE INFORMATION:
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
Katy Mitchell and Matt Chan, WH Ireland Limited +44 207 220 1666
Jon Belliss, Novum Securities Limited +44 207 382 8300
ABOUT MINERAL AND FINANCIAL INVESTMENTS LIMITED:
Mineral and Financial Investments Limited is a Swiss and Cayman
Island based investment company quoted on AIM, a market of the
London Stock Exchange. M&FI has in excess of 20 investments in
the natural resource sector with the majority in the metals and
minerals. M&FI's Net Asset Value per share (NAVPS) is 17.1p, as
of March 30, 2021. M&FI's NAVPS has risen at a Compound Annual
Growth Rate (CAGR) of 26.7% since December 31, 2016.
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