Ascendant Resources Inc. (TSX: ASND) (OTCQX:
ASDRF) ("Ascendant" or the "Company”) is pleased to announce that
it has entered into a silver purchase and sale agreement (the
“agreement”) with Maverix Metals Inc. (“Maverix”) to support the
Company’s working capital position and provide financial stability
in a non-dilutive manner. Maverix will make an upfront payment of
US$7.5 million dollars to Ascendant for the right to purchase 22.5%
of the life of mine payable silver production from the company’s El
Mochito mine in Honduras.
In addition to the initial payment, the Company
will be entitled to an ongoing payment of 25% of the value of the
corresponding portion of payable silver priced at the lesser of the
average silver price during the preceding month or the price of
silver at the time of delivery. The Agreement includes a step-down
option whereby the stream percentage will be reduced from 22.5%
down to 20% upon certain production milestones being met.
Upon the satisfaction of additional conditions,
a mechanism exists to increase the value of the stream with an
additional upfront payment of US$7.5 million for the right to
purchase a combined total of 40% of the life of mine payable silver
production from El Mochito under similar commercial terms. In this
case, the stream percentage will be reduced to 30% once Maverix has
purchased a cumulative total of 3,000,000 ounces of silver.
Chris Buncic, President & CEO of Ascendant
stated, “Our transaction with Maverix represents a strategic and
non-dilutive financing solution for the Company to strengthen its
balance sheet as we continue to drive improvements at El Mochito.
This silver stream allows us to preserve exposure to primary metal
prices while maintaining a significant majority of the payable
silver from El Mochito. We are very pleased to be working together
with Maverix for the next growth chapter at El Mochito. At the same
time, we continue to make excellent progress with the previously
announced project financing with OPIC with hopes to begin
construction early in the third quarter.”
“Maverix is excited to partner with Ascendant by
offering a financing solution that will allow them to significantly
improve their balance sheet and keep the operating team at El
Mochito fully focused on unlocking the mine’s long-term potential,”
commented Dan O’Flaherty, CEO of Maverix. “The addition of this
cash flowing asset further strengthens our portfolio and
meaningfully increases our attributable precious metals production
per share.”
Ascendant was very pleased with the engagement
and success of Scotiabank, who acted as financial advisor to
Ascendant in the silver stream transaction.
Closing of the transaction is expected in April
2019.
About Maverix Metals
Inc.
Maverix is a gold royalty and streaming company.
Maverix’s mission is to provide its shareholders with significant
low risk leverage to precious metal prices and to increase
underlying per share value by expanding its portfolio with
acquisitions of high-quality royalties and streams that offer
robust returns.
About Ascendant Resources Inc.
Ascendant is a Toronto-based mining company
focused on its 100%-owned producing El Mochito zinc, lead and
silver mine in west-central Honduras and its high-grade
polymetallic Lagoa Salgada VMS Project located in the prolific
Iberian Pyrite Belt in Portugal.
After acquiring the El Mochito mine in December
2016, Ascendant spent 2017 and 2018 implementing a rigorous and
successful optimization program restoring the historic potential of
El Mochito, a mine in production since 1948, to deliver record
levels of production with profitability restored. The Company now
remains focused on further cost reduction and operational
improvements to drive profitability in 2019 and beyond. With a
significant land package of approximately 11,000 hectares in
Honduras and an abundance of historical data, there are several
near-mine and regional targets providing longer term exploration
upside which could lead to further Mineral Resource growth.
Ascendant holds an interest in the high-grade
polymetallic Lagoa Salgada VMS Project located in the prolific
Iberian Pyrite Belt in Portugal. The Company is engaged in
exploration of the Project with the goal of expanding the
already-substantial Mineral Resource Estimate of over 20 million
tonnes and testing additional known targets as defined by the 2018
exploration program. The Company’s acquisition of its interest in
the Lagoa Salgada Project offers a low-cost entry point to a
potentially significant exploration and development opportunity.
The Company holds an additional option to increase its interest in
the Project upon completion of certain milestones.
Ascendant Resources is engaged in the ongoing
evaluation of producing and development stage mineral resource
opportunities, on an ongoing basis. The Company's common shares are
principally listed on the Toronto Stock Exchange under the symbol
"ASND". For more information on Ascendant Resources, please visit
our website at www.ascendantresources.com.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:Katherine PrydeDirector, Communications & Investor
RelationsTel: 888-723-7413info@ascendantresources.com
Forward Looking
Information
This news release contains "forward-looking statements" and
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable Canadian securities
legislation. All information contained in this news release, other
than statements of current and historical fact, is forward-looking
information. Often, but not always, forward-looking information can
be identified by the use of words such as "plans", "expects",
"budget", "guidance", "scheduled", "estimates", "forecasts",
"strategy", "target", "intends", "objective", "goal",
"understands", "anticipates" and "believes" (and variations of
these or similar words) and statements that certain actions, events
or results "may", "could", "would", "should", "might" "occur" or
"be achieved" or "will be taken" (and variations of these or
similar expressions). Forward-looking information is also
identifiable in statements of currently occurring matters which may
continue in the future, such as "providing the Company with", "is
currently", "allows/allowing for", "will advance" or "continues to"
or other statements that may be stated in the present tense with
future implications. All of the forward-looking information in this
news release is qualified by this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the ability
of the Company to fully comply with its obligations under the term
of the Agreement, the commencement of the expansion project at el
Mochito and the continuation of the exploration program at Lagoa
Salgada. The material factors or assumptions that Ascendant
identified and were applied by Ascendant in drawing conclusions or
making forecasts or projections set out in the forward-looking
information include, but are not limited to, the ability of the
Company to comply in full with its obligations under the
Agreement, the ability to commence the expansion of the El
Mochito mine and continue with the exploration program at Lagoa
Salgada.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of Ascendant's projects, dependence on key personnel
and employee and union relations, risks related to political or
social unrest or change, rights and title claims, operational risks
and hazards, including unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, volatile
financial markets that may affect Ascendant's ability to obtain
additional financing on acceptable terms, the failure to obtain
required approvals or clearances from government authorities on a
timely basis, uncertainties related to the geology, continuity,
grade and estimates of Mineral Reserves and Mineral Resources, and
the potential for variations in grade and recovery rates, uncertain
costs of reclamation activities, tax refunds, hedging transactions,
the inability of the Company to meet its guidance, the inability of
the Company to fully comply with its obligations under the
Agreement, the inability to commence the expansion of the El
Mochito mine, and continue with the exploration program at Lagoa
Salgada, as well as the risks discussed in Ascendant's most recent
Annual Information Form on file with the Canadian provincial
securities regulatory authorities and available at
www.sedar.com.
Should one or more risk, uncertainty,
contingency, or other factor materialize, or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
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