Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF | FRA: 2D9) has announced that it is finalizing an amendment to the existing metals purchase and sale agreement with Sprott Resource and Streaming Royalty Corp., including an increased deposit of US$4M against future production at its Lagoa Salgada VMS project in Portugal.
The agreement is being amended to increase the stream percentage to 2.75% of gross metals from 1.75%. To facilitate funding in advance of commercial production, the parties intend to amend the existing 10% secured note from US$15M to US$19M. The amendments are expected to be completed and funded around 29 November 2023.
Mark Brennan, executive chairman of Ascendant stated, “We are extremely pleased by the continued support of our partners at Sprott Streaming to drive the next stage of development at the Lagoa Salgada project. With this funding in place, we are now able to pursue various work programs that we believe will provide improvement to the operational process that will add significant economic enhancement to the recently completed feasibility study.”
Proceeds will fund development works including metallurgical work aimed to further enhance both recoveries and concentrate qualities at Lagoa Salgada as well as optimizing the mine plan, production scheduling, and plant size which are expected to improve project economics.
The works will be led by Mr. Val Coetzee who has been appointed as director of process development at Ascendant in conjunction with independent technical consultant DRA Global Limited. Based on this work, an updated feasibility study is expected to be completed by early Q2 2024.
Additionally, following a request by Empresa de Desenvolvimento Mineiro S.A. (EDM), the Portuguese state mining development agency, for a 60-day extension to its existing option to participate in or sell up to a 15% interest in the project by making its election by 3 February 2024, Ascendant and Mineral and Financial Investments AG (M&FI) have agreed to amend the terms of their respective call and put options.
To find out more, please visit www.ascendantresources.com
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