Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has completed the tender process for its export credit agency (ECA) project financing and expects to complete the on-boarding and appointment process within the next few weeks. The company has chosen two international banks to act as MLAs; one for the Monte Do Carmo Project (MDC) and another for its Mont Sorcier (MS) Project, Quebec.
Mark Brennan, CEO, and chairman, stated, “After a robust tender process, we are very pleased to have been in a position to generate the support of two very strong project financing institutions to lead our project financings. We view the early commitment of the ECA’s and the MLAs as a testament to the robust financial strength of the MDC and MS projects. With the completion of the MDC feasibility study imminent, we are excited to bring the first of these two great projects towards a fully funded project development decision during Q2/2024.”
As announced on 5 September 2023, the company, together with its advisors, SD Capital Advisory Ltd and GKB Ventures Ltd (S&G), 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).
As a result of this process the company received several compelling bids and have evaluated the bids based on experience, execution capabilities, and financial terms. The institutions selected have extensive experience in ECA financing, a longstanding relationship with UKEF, and presented competitive terms for the financing.
Cerrado is currently undertaking a review of formal engagement letters with each bank and will announce their terms once signed.
As outlined previously, UKEF has expressed an interest to 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, political risk insurance premium as well as other approved expenditures for each project.
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