Ascendant Resources Inc said it signed with the Portuguese government the definitive mining concession contract for its Lagoa Salgada VMS project in the prolific Iberian Pyrite Belt.
The company said the initial contract term is for 20 years renewable with two extension periods of 15 years each.
“We are extremely pleased with the signing of the definitive mining concession contract as this represents another major milestone for continuing development of the Lagoa Salgada Project," said Mark Brennan, executive chairman and interim CEO of Ascendant, in a statement.
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“We would like to thank the Portuguese government for their ongoing support of Lagoa Salgada and the mining sector overall. We look forward to moving Lagoa Salgada to the next stage of its development and expect the project will be an important contributor for the region and country's social-economic development," Brennan added.
Ascendant said Phase 1 will have a duration of six years from signing to present with approval of an Environmental Impact Assessment (EIA) and a Definitive Feasibility Study (DFS). Phase 2 would within nine years of signing commence with the exploitation of the mineral deposits and to build an ore treatment industrial facility (mill).
During Phase 1, Ascendant said it plans to execute all necessary exploration and other works that aim to contribute to the improved knowledge of their mineral deposits and improve resources through the delivery of an NI 43-101 Feasibility Study during 2022, which will define the planned development and economic potential of the project.
The company also said Phase 2 can occur simultaneously with Phase 1 if it proves to be technically feasible and provided that the necessary authorizations and approvals are obtained.
Ascendant noted that the contract stipulates a 3% royalty on the value of mining products or concentrates shipped or used. The royalty is divided -- 2/3 for Portugal’s General Directorate for Energy and Geology (DGEG) and 1/3 for the municipalities where the project is located.
The company also said it is required to outline its reclamation plans and minimization of the environmental impact of the operation within five years after the start of the exploration program, corresponding to 10% of the financial charges foreseen for the execution of safety plans, environmental protection, management of waste and the landscape recovery and integration plan contained in the mining plan approved by the DGEG, and may not be less than €1 million.
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