Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF | FRA:2D9) has announced that following a successful and oversubscribed tender process, it has selected an international bank to act as the MLA for its export credit agency (ECA) supported non-recourse project financing at its Lagoa Salgada Project in Portugal.
The company is currently in the process of reviewing the engagement letter and expects to announce the bank and terms in early November.
Mark Brennan, executive chairman, said, “After receiving several compelling offers, we are confident that we have selected a strong partner to lead our project financing and help bring our project towards a fully funded construction decision in Q2 2024.”
As announced on 5th September 2023 the company together with its advisors, SD Capital Advisory Ltd and GKB Ventures Ltd, initiated a tender process to solicit interest from a number of global project finance banks to act as MLA for the company’s ECA supported non-recourse project financing, supported by the UK Export Finance agency (UKEF).
The tender process resulted in the company receiving several compelling bids and has now evaluated the bids based on experience, execution capabilities, and financial terms. The institution selected has extensive experience in ECA financing, a strong position and understanding of Portugal, a longstanding relationship with UKEF, and presented competitive terms for the financing.
Ascendant is currently undertaking a review of a formal engagement letter with the bank and will announce terms once signed. Once engaged, the next phase of the process will comprise a formal due diligence period before final binding offers and documentation which are expected to be completed in 2Q 2024.
As outlined previously, UKEF has expressed an interest to provide support for up to US$190M for the Lagoa Salgada Project, representing 70% of total capital expenditure, interest payable during construction, political risk insurance premium, as well as other approved expenditures for each project.
To find out more, please visit www.ascendantresources.com
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