Globex Mining Enterprises Inc shared some promising news about a Quebec mineral property in which it has an interest.
In a statement, Globex said Cerrado Gold had received an Expression of Interest (EOI) acceptance from the UK Export Credit Agency (UKEF) to provide financial support of up to $420 million for the Mont Sorcier iron vanadium project.
Globex holds a 1% gross metal royalty (GMR) on all iron production from the property, as well as a significant share position in Electric Royalties, which possesses a 1% GMR on all vanadium production.
Mont Sorcier represents a well-advanced, substantial, economically viable project situated within a highly regarded mining jurisdiction, according to Globex.
In September 2022, Voyager Metals, now a wholly-wned subsidiary of Cerrado, concluded a Preliminary Economic Assessment (PEA) on Mont Sorcier, revealing a project with an after-tax Net Present Value (NPV) of US$1.6 billion and an Internal Rate of Return (IRR) of 43%.
The project is anticipated to produce five million metric tonnes per annum of iron concentrate over a mine life of 21 years, generating annual free cash flow of US$245 million.
Cerrado is working towards completing a bankable feasibility study.
In a press release from Cerrado, the company stated that UKEF's involvement at this stage is preliminary.
While the company noted The EOI is not a legally binding commitment, it provides an indication of the available country limits, reflects the attractiveness of the project, and outlines the potential level of financial support, along with desired conditions.
Globex is a Toronto Stock Exchange, Frankfurt and OTCQX-listed corporation with a diversified North American portfolio of mid-stage exploration, development and royalty properties.
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