Mineral & Financial Investments Ltd and partner Ascendant have amended the terms of the offtake and royalty deal over the Lagoa Salgada project with Canadian resources group Sprott.
Amendments will now see the cash upfront paid by Sprott rise by US$4 million in return for an increase in the stream percentage to 2.75% of gross metals from 1.75%.
To facilitate funding in advance of commercial production, the existing 10% secured note will also be amended from US$15 million to US$19 million.
The additional money will fund metallurgical work to enhance both recoveries and concentrate qualities at Lagoa Salgada as well as optimising the mine plan.
Separately, there has been an amendment to the agreement with Portugal's state mining company EDM, giving it the option to acquire 15% of M&F’s 20% stake in project developer Redcorp if it chooses.
If exercised, that triggers M&F’s put option over its stake in Redcorp with Ascendant.