Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has announced that in relation to potential Export Credit Agency (ECA) supported project financing of up to US$598M, it has appointed the Toronto-Dominion Bank (TD) as the mandated lead arranger (MLA) for its Mont Sorcier Iron and Vanadium Project, Québec.
Mark Brennan, CEO, and Chairman, stated, “We are very pleased to have the support of TD as the MLA to lead our project financing in partnership with UKEF as we progress with the development of Mont Sorcier. We believe the strong interest in our project is indicative of the robust nature of the Mont Sorcier project and we look forward to working with TD, UKEF, and other stakeholders to deliver the Mont Sorcier project.”
As previously announced, the company together with its advisors, SD Capital Advisory Ltd and GKB Ventures Ltd, initiated a tender process to solicit interest from global project finance banks to act as the MLA for the Brazil and Quebec projects. As a result of this competitive process, Cerrado received compelling bids. Together with the company’s advisors, the bids were evaluated based on ECA project finance experience, execution capabilities, and ultimately the financial terms for the project financing. TD has extensive experience in ECA financing, a longstanding relationship with UKEF, and presented competitive and compelling terms for the project financing.
The UKEF-backed facility is expected to be for up to US$598M on a non-recourse project financing basis for a total tenor of 11 years. The funding will be to cover 70% of the expected project capital expenditures for the Mont Sorcier project.
Cerrado is also in the final stages of finalizing the appointment of the MLA for its Monte Do Carmo project in Brazil.
To find out more, please visit www.cerradogold.com
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