Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has received and accepted expressions of interest (EOIs) from UK export finance (UKEF) to support potential export credit facilities for the company’s wholly-owned Monte Do Carmo project in Tocantins, Brazil (MDC), and the Mont Sorcier Iron Ore and Vanadium project (MS) in Quebec, Canada.
Mark Brennan, CEO, and chairman commented “We are very pleased to partner with UKEF to bring both our Monte Do Carmo and Mont Sorcier projects into development. The support of the UK government and UKEF is a testament to the robust and attractive nature of both the MDC and MS projects, and we look forward to working with UKEF and the future appointed MLA to complete project financing in the coming months.”
The EOIs will provide support for up to US$190M for the MDC project and up to US$420M for the MS 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 (ECA). UKEF operates under an act of parliament to support UK exports, predominately through the provision of 100% unconditional guarantees backed by the UK government.
UKEF’s engagement is at an early stage and is subject to a series of standard project finance terms and due diligence, including suitable structured offtake contracts, the successful completion of the definitive feasibility study, and an environmental and social impact assessment (ESIA) to Equator Principles.
The EOI provides an indication of currently available country limits, an indication of the attractiveness of the project, and covers the level of financial support, their flexibility, and desired conditions.
Additionally, the EOI is in line with the OECD arrangements for officially supported export credits and stipulates minimum UK content requirements whilst enabling equipment to be sourced locally and from other countries.
To find out more, please visit www.cerradogold.com
