viewMineral & Financial Investment Limited

Mineral & Financial Investments acquires interest in Costa Rica gold mine venture

“Bellavista should be in production during 2019 and is precisely the type of near-term cash flow opportunity that M&FI is seeking," said Jacques Vaillancourt.

It has acquired convertible loan notes, which pay 20% interest per year

Mineral & Financial Investments Ltd (LON:MAFL) has announced it has taken an interest in Golden Sun Resources Limited, a group that’s advancing the Costa Rica based Bellavista mine into production later this year.

It has purchased US$250,000 of Golden Sun’s ‘Series B’ convertible debt. The loan notes mature in April 2024 and they carry 20% interest per year. ‘Series A’ notes are held by Golden Sun’s board management and a few people close to board members.

The loan notes are convertible into equity after 30 April 2021 and once the mine has generated at least US$350,000 of cash flow per month for three consecutive months.

READ: Mineral and Financial is “on the cusp of a world-class asset”

Presently, M&FI’s loan note holding would equate to a 2.4% shareholding in Golden Sun – assuming a full conversion and that no additional dilutive financing occurs.

"This investment is consistent with our cornerstone investment principles underpinning our ongoing search for investments with attractive financing terms backed by outstanding natural resource assets, good management and representing good value within the mining sector,” said Jacques Vaillancourt, M&FI chairman.

“Bellavista should be in production during 2019 and is precisely the type of near-term cash flow opportunity that M&FI is seeking. Bellavista is a high-quality asset that will be advanced prudently."

The Bellavista mine is slated to be in production during the third quarter.

It has previously been in operation, producing at around 50,000 ounces per year between 2005 and 2007, and, in the most recent estimation was seen to contain some 1mln ounces of gold.

M&FI highlighted that its investment implies a very attractive entry valuation of just US$8 per ounce, for the in-situ gold resource.

The company also noted that Golden Sun is pursuing a ‘prudent, gradual, self-financing’ expansion plan for the mine.

Quick facts: Mineral & Financial Investment Limited

Price: 11.25 GBX

Market: AIM
Market Cap: £3.94 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mineral & Financial Investment Limited named herein, including the promotion by the Company of Mineral & Financial Investment Limited in any...



Mineral & Financial Investments sees NAV almost double to £5.1mln

Mineral & Financial Investments Ltd's (LON:MAFL) Jacques Vaillancourt talks Proactive London's Andrew Scott through their full year results to June 2019. MAFL saw the value of its assets nearly double in the last year to just over £5.1mln. In the year M&FI took full ownership of TH...

on 29/11/19

2 min read