Mineral & Financial Investments Ltd (AIM:MAFL) announced that 75%-owned Redcorp Empreedimentos Mineiros and Ascendant Resources have signed an agreement with the Portuguese government for the definitive mining concession contract for the Lagoa Salgada VMS project in the prolific Iberian Pyrite Belt.
The initial contract term agreed by Portugal’s General Directorate for Energy and Geology (DGEG) with Redcorp and Ascendant is for 20 years, beginning on 28 October 2021, and renewable for two extension periods of 15 years each.
In the two distinct phases for work development that have been defined, the first six years from signing, is to obtain approval of an Environmental Impact Assessment and a definitive feasibility study (DFS.
The second phase, to start within nine years of signing and possibly alongside the first phase if technically possible, is to start the exploitation of the mineral deposits and to build an ore treatment mill.
The contract stipulates a 3% royalty on the value at the mouth of the mine of mining products or concentrates shipped or used, with two-thirds being paid to the DGEG and remaining third paid to the municipalities where the project is located.
MF&I 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. This not be less than €1mln.
Jacques Vaillancourt, president and CEO of M&FI, said: “We are extremely pleased with the signing of the definitive mining concession contract as this represents another huge step towards the full development of the Lagoa Salgada Project.”
He added: “We look forward to Redcorp and Ascendant 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.”