TIDMMAFL
RNS Number : 2045J
Mineral & Financial Invest. Limited
09 December 2022
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Investment Update: US$2.5 Million Cash Payment Received from
Ascendant Resources
George Town, Cayman Islands - 9 December 2022 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" "MAFL" or
the "Company") is pleased to provide an update on the earn-in
agreement made between its wholly owned subsidiary, Mineral and
Financial Investments AG (previously known as TH Crestgate)
("M&FI AG") and Ascendant Resources ("Ascendant") in relation
to Redcorp Empreedimentos Mineiros Lda (Redcorp) and its VMS
polymetallic Lagoa Salgada deposit located in South Central
Portugal (the "Project") (the "Earn In Agreement").
On 8 December 2022, in accordance with the terms of the Earn In
Agreement announced on 2 August 2018 (as amended on 1 July 2020 and
15 July 2022) M&FI AG received a US$2.5 million payment . This
is the first of a two part obligation pursuant to which Ascendant
can earn an additional 30% (totalling an 80% effective interest) in
the Project. The second obligation, which remains outstanding, is
that Ascendant is required to complete a feasibility study by 22
June 2023. This feasibility work is ongoing and further updates
will be provided in due course as appropriate.
Background
On 25 May 2022, M&FI confirmed that Ascendant Resources had
completed the first phase of the Earn In Agreement and had
increased its effective ownership interest from 25% to 50% in the
Project. As a final stage of the agreement, Ascendant had the
option to earn an additional 30% interest in the Project (totaling
an 80% effective interest in the Project) by both completing a
feasibility study by December 22, 2022 and making a payment of
US$2.5m to M&FI AG. However on 15 July 2022, it was announced
that all parties had agreed to extend the deadline by which the
feasibility study on the Project was to be completed to June 22,
2023. It was also agreed that the payment date for the US$2.5m was
unchanged, and accordingly this has been paid today.
Original Announcement
The following is a summary of the earn-in agreement, as detailed
originally when disclosed, in a press release dated August 2, 2018
("Original Announcement") -
"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 (Completed), and
o Making payments totaling US$3.5 million to M&FI AG
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 - Received)
-- 54 Months after the closing date: US$2.5 million (Dec. 22,
2022 - Received)
-- Ascendant then has the option to earn an additional 30%,
totaling an 80% interest in Redcorp, the operating subsidiary, by
completing a Feasibility study on or before June 22, 2023 (as
amended) - (Un-completed).
-- 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 MORE INFORMATION:
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
Katy Mitchell, Sarah Mather, 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 Cayman Island
based investment company quoted on AIM, a market of the London
Stock Exchange. M&FI has in excess of 31 investments in the
natural resource sectors, the majority in the metals and minerals.
M&FI's Net Asset Value per share (NAVPS) is 19.57p, as of March
30, 2021. M&FI's NAVPS has risen at a Compound Annual Growth
Rate (CAGR) of 28.2% since March 31, 2018.
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END
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