TIDMMAFL
RNS Number : 0345Q
Mineral & Financial Invest. Limited
15 February 2023
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Investment Update: Golden Sun Resources Ltd.
HIGHLIGHTS :
-- Golden Sun Resources and Sprott Resource Streaming and
Royalty Corp. have closed a US$10M financing to build 400 TPD
Carbon In Leach Plant at BellaVista.
-- M&FI Converted its Convertible Loan Notes into common
shares to facilitate completion of Financing
-- M&FI's Note investment in GSR have returned +153% to conversion face value
-- Project construction at Golden Sun began in December 2022 and
should be completed in March 2024
Camana Bay, Cayman Islands - 15 February 2023 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" "MAFL" or
the "Company") is pleased to provide an update on its investment in
Golden Sun Resources Ltd. (GSR) investment. GSR operates the
Bellavista Mine, located near Miramar in Costa Rica. Terrasun
Resources Inc, GSR's exploration subsidiary, holds a portfolio over
a dozen exploration projects that have historic resources or are
highly prospective. Terrasun is a wholly owned subsidiary and the
intention is that the subsdiary will be spun-out to GSR
shareholders, further updates on this will be provided in due
course as this progresses. GSR combined with Terrasun, is the
largest mining and exploration group in Costa Rica.
GSR and Sprott Resource Streaming and Royalty Corp ("Sprott")
have entered into a US$10.0M Streaming based financing package to
expand the BellaVista operations from a small scale Pilot Plant
heap leach operation to a full mining and milling operation (the
"Financing Package"). The financing package will fund several
initiatives, and the construction of a 400 tonnes per day Carbon in
Leach (CIL) mill. The mill construction and expansion is expected
to be completed by March 2024.
To facilitate the execution of the Financing Package M&FI
has agreed to convert its existing secured convertible loan notes
(known as the Series B Notes (issued on 30 June 2019), the Series C
Notes (issued on 31 January 2020) and the Series D Notes (issued on
26 May 2021) (together the "Secured Convertible Notes")) into
common shares of Golden Sun Resources. All the Secured Convertible
Notes accrued interest at 20% per annum, and had a maturity date of
30 April 2024. The agreement reached with GSR and Sprott meant that
the Secured Convertible Notes have been converted into common
shares in GSR with immediate effect. However, the accrued value
utilised was at a 30% premium to the accrued face value as at 18
December 2022. The share conversion price of US$1.2677 per GSR
share, This premium reflects the loss of the interest accruals up
to the maturity date of each note. Accordingly, M&FI now holds
922,955 common shares in GSR representing 5.2% of the issued common
shares of GSR.
A summary of that conversion is set out below:
Resulting
(All currency values Original Face Value Appreciation # of GSR shares
in USD) Investment @ Conversion on Face Value now held
Series B Notes $250,000 $655,880 +162.4% 524,704
------------ -------------- --------------- -----------------
Series C Notes $208,161 $395,978 +90.2% 316,783
------------ -------------- --------------- -----------------
Series D Notes $75,000 $117,295 +56.4% 81,469
------------ -------------- --------------- -----------------
Sub-Total $463,161 $1,169,988 +152.4% 922,955
------------ -------------- --------------- -----------------
In addition to the Secured Convertible Notes, M&FI had
provided two small Bridge Loans to GSR totalling US$175,000.. The
first loan of US$75,000 was for general working capital to ensure
timely pre-construction funding until the Sprott Financing closed,
and was repaid upon the execution of the Financing Package. The
second loan of US$100,000 was used by GSR to repurchase a royalty
on the Bellavista Mine (the "Second Loan"), This Second Loan has
now been repaid, however the associated loan documentation
contained a commitment from GSR to grant M&FI a6% share of a 2%
Net Smelter Royalty (NSR) on BellaVista . This has not yet been
granted but further updates will be provided in due course as
appropriate.
In M&FI's 30 June, 2022 year end Net Asset Value (see RNS of
23/12/2022) M&FI recognised the value of the GSR Secured
Convertible Notes at US$819,517, the then estimated value of these
notes at their face value plus their accruals. The agreed to final
value of the Secured Convertible Notes, as set out above, is 42.5%
higher than the last reported value of the notes. GSR's most recent
equity financing valuation in January 2023 indicates a US$1.75 per
share value for Golden Sun Resources, or an estimated current value
of $1,615,172. However, as GSR is a private company, this
information is provided for guidance purposes only. There is no
guarantee that M&FI will be able to utilise this valuation for
reporting purposes or that this value can be realised until the
investment is monetised.
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
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.
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 25 investments in the
natural resource sectors, the majority in the metals and minerals.
M&FI's Net Asset Value per share (NAVPS) is 20.04p, as of 30
June, 2022. M&FI's NAVPS has risen at a Compound Annual Growth
Rate (CAGR) of 27.9% since 30 June, 2018.
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END
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