Mineral and Financial Investments Ltd (LON:MAFL) has received a further US$1mln payment as part of its earn-in agreement with Ascendant Resources Inc (TSE:ASND) in regard to the Lagoa Salgada zinc-lead-copper project in Portugal.
"Ascendant Resources have been an outstanding partner, meeting every payment and significantly expanding the project’s size and scope during a challenging time globally,” said Mineral and Financial’s chief executive Jacques Vaillancourt.
“We continue to believe that this project will grow from its current size"
The earn-in option has a minimum total value, if fully exercised, of US$15mln.
A further US$1mln is due on 22 June 2022, after which time Ascendant then has the option to earn an additional 30%, taking its total interest in Lagoa Salgada to 80% by completing a feasibility study within 54 months and making a further payment of US$2.5mln.
In addition, Ascendant will fund all development and future construction costs and recoup Mineral and Financial’s share of the costs through cash flow until repaid.
Mineral and Financial has more than 20 investments in the natural resource sector, with the majority in metals and minerals. Its net asset value per share was 17.1p, as at March 30, 2021.