Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has announced that in relation to the Export Credit Agency (ECA) supported project financing of up to US$175M, the company has appointed Banco Santander, S.A. (Santander) as MLA for the Monte Do Carmo Project, Brazil.
Santander has now executed the engagement letter and completed administrative procedures and onboarding and plans to initiate the due diligence process within the coming weeks.
Mark Brennan, executive chairman, commented, “We are very pleased to have the support of such a well-regarded and experienced financial institution such as Santander as MLA to lead our project financing in partnership with UKEF as we progress with the development of Monte Do Carmo. We view the support of Santander and UKEF as another indication of the robust nature of the Monte Do Carmo project.”
The company received several compelling bids, and together with its advisors the bids were evaluated based on ECA project finance experience, execution capabilities, and ultimately the financial terms for the project financing.
Additionally, the company has stated that Santander has extensive experience in ECA financing, a longstanding relationship with UKEF, and presented competitive and compelling terms for the project financing. Additionally, Brazil is one of the core markets for the Santander which is also one of the Top 20 largest financial institutions, globally.
The UKEF backed facility is expected to be for up to US$175M on a non-recourse project financing basis for a total tenor of eight years. The funding will cover 70% of the expected project capital expenditures for the Monte Do Carmo Project.
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