Ascendant Resources Inc. (TSX: ASND) has entered into a US$15M metals stream agreement with Sprott Private Resource Streaming and Royalty Corp. for its Lagoa Salgada VMS project located close to Lisbon, Portugal.
Mark Brennan, Ascendant’s executive chairman, said, “We are thrilled to be partnering with the very experienced and talented team at Sprott Streaming to fully finance our feasibility study at Lagoa Salgada in a non-dilutive and timely manner allowing us to continue development of the project to a construction decision.
Mr Brennan said proceeds will be used to complete the ongoing 43-101 compliant feasibility study for the project and to advance permitting activities, as well as to fund the last instalment related to the earn-in for an 80% interest in the project and general corporate and working capital purposes.
The agreement provides for the sale and delivery to Sprott Streaming of 1.75% of all metals produced from the project at a rate of 15% of the market price until the delivery of 45,000 gold equivalent ounces, at which point the rate will be increased to 75% of the market price. Ascendant can also buy down up to 50% of the stream on or before two years following the date of commencement of commercial production at the project for up to US$10.5M.
“Ascendant has made tremendous progress on its technical studies for the feasibility study at Lagoa Salgada, which leads us to expect a very robust outcome,” added Mr Brennan.
To find out more, visit: https://ascendantresources.com/