Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF | FRA: 2D9) has received and accepted an expression of interest (EOI) from UK export finance (UKEF) to support a potential export credit facility for the company’s Lagoa Salgada Project, Portugal.
Mark Brennan, executive chairman and founder commented “We are very pleased to partner with UKEF to bring Lagoa Salgada into development. The support of the UK government and UKEF is a testament to the robust and attractive nature of the Lagoa Salgada Project, and we look forward to working with UKEF and the future appointed MLA to complete project financing in the coming months.”
The EOI will provide support for up to US$190M for the project representing 70% of total capital expenditure, interest payable during construction, the political risk insurance premium, as well as other approved expenditures for the project.
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 to Equator Principles.
The EOI provides an indication of currently available country limits, and an indication of the attractiveness of the project. It also covers the level of financial support, their flexibility, and desired conditions.
Additionally, the company has selected UKEF based on numerous factors related to the terms of the expression of interest and unique aspects of the capital spend at the Lagoa Salgada Project.
Together with S&G, the company will now be soliciting interest from project finance banks to act as mandated lead arranger (MLA) for the transaction.
Ascendant expects to appoint an MLA by the end of July 2023. Once an MLA has been appointed, detailed due diligence will commence with the aim of receiving final terms for the ECA backed project financing at Lagoa Salgada towards the end of the year.
To find out more, please visit www.ascendantresources.com
