Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has commenced the tender phase for the Mandated Lead Arranger (MLA) of its export credit agency project financing programme.
Mark Brennan, executive chairman, commented “We are very pleased to be moving forward to the next stage of determining project financing support to bring both Monte Do Carmo and Mont Sorcier projects into development. We look forward to working with UKEF and the future appointed MLA to complete project financing in the coming months.”
As of 4 September 2023, the company and its advisors have issued detailed banking information memorandums to a number of project finance banks who have indicated an interest in being the Mandated Lead Arranger as part of the UK Export Finance (UKEF) supported export credit facilities for the company’s wholly-owned Monte Do Carmo Project in Tocantins State, Brazil (MDC), and the Mont Sorcier Iron Ore and Vanadium Project in Quebec, Canada (MS).
The selection of the MLA is expected to be completed by the end of September. Once an MLA has been appointed, detailed due diligence will commence with the aim of receiving final terms for the ECA backed project financing at MDC towards the end of the year.
UKEF has expressed an interest to provide support for up to US$190M for the Lagoa project, representing 70% of total capital expenditure, interest payable during construction, the political risk insurance premium as well as other approved expenditures for each project.
UKEF is a department of the UK Government and is the UK’s official export credit agency. UKEF operates under an Act of Parliament to support UK exports, predominately through the provision of 100% unconditional guarantees backed by the UK Government.
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