MINERAL AND FINANCIAL
INVESTMENTS LIMITED
Investment Update: Ascendant
Resources/ Redcorp to Integrate Artificial
Intelligence for exploration at Lagoa Salgada in Partnership with
the University of Évora, Portugal
HIGHLIGHTS:
· Ascendant announces partnership to
integrate hyperspectral technology, Artificial Intelligence ("AI")
and machine learning for exploration as part of the Innovative
HYPERMETAL Project.
· HYPERMETAL project is designed to
revolutionize the efficiency and precision of polymetallic mineral
exploration by enhancing the characterization of
deposits.
· Redcorp advises program to be funded via
application for Portugal 2030 Funding under the New Technologies
Specialization Program.
· Redcorp (in agreement with Ascendant),
grants an extension to EDM to acquire up to a 15% interest in the
Lagoa Salgada Project
Camana Bay, Cayman Islands - 19 September 2024 -
Mineral and Financial Investments Limited
(LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is
pleased to provide an update on its investments in Redcorp
Empreedimentos Mineros Lda. ("Redcorp") and Ascendant Resources Inc.
("Ascendant") which are
developing the Lagoa Salgada Polymetallic Project in Portugal (the
Project). The Project is
managed by Ascendant. M&F owns a conditional 20% carried
interest in Redcorp and Ascendant owns the balance (please see the
announcement dated 28 November 2022 for further
details).
Redcorp, has entered into a
partnership with the University of Évora, Portugal, in a joint
application for funding under the Portugal 2030 program, in the
area of New Technologies Specialization. The funding will support
the development of the groundbreaking HYPERMETAL project, which
aims to integrate advanced hyperspectral technology, AI and Machine
Learning into traditional mineral exploration methods.
The HYPERMETAL project is designed
to revolutionize the efficiency and precision of polymetallic
mineral exploration by enhancing the characterization of deposits.
By reinterpreting historical drill cores and combining traditional
methods (Geochemistry and Mineralogy) with hyperspectral analyses,
the project should generate an advanced Digital Twin of the
orebody, significantly improving the understanding and development
of new exploration targets through AI and machine learning systems,
to continue to expand the known mineralization at Lagoa
Salgada.
One of the Hypermetal project's key
milestones will be the execution of a new drill hole, which will be
studied using both conventional methodologies and hyperspectral
technology. Through the application of Machine Learning and AI, the
collected data will be classified to map ore occurrences,
hydrothermal alteration halos, and key lithologies. The result will
be a cutting-edge digital platform capable of processing
hyperspectral images and generating precise visualizations of ore
distribution and alteration zones throughout the drill
hole.
Jacques Vaillancourt, President
& CEO of M&F stated, "We understand that the
HYPERMETAL project and the integration of cutting-edge AI
technologies represents a leap forward in mineral exploration
technology. Redcorp's partnership with the University of Évora
reflects a commitment to embracing new technologies, such as AI,
and fostering innovation within the mining sector, enhancing
Redcorp's exploration capabilities which we understand should
contribute to the successful development of Lagoa
Salgada".
Redcorp also advises that the joint
application to the Portugal 2030 program (between Redcorp and the
University of Evora), reinforces Redcorp's dedication to leveraging
innovative technologies that align with the European Union's goals
for sustainability and economic growth. Redcorp anticipate
receiving the results of its application by the end of November
2024.
The Company is advised that the
Portugal 2030 financial framework is structured around 12 distinct
programs, with Compete 2030 focusing on innovation and digital
transformation. This program is backed by €3.9 billion in funding
from the European Regional Development Fund ("ERDF") and the
European Social Fund Plus ("ESF+") and aims to drive development in
Portugal's less advanced mainland regions and its Autonomous
Regions. Its key goals include boosting innovation,
competitiveness, energy transition, and workforce skills. Under the
"A More Competitive Portugal" initiative, the program emphasizes
digitalization, research, innovation, and SME growth. The "A
Greener Portugal" goal promotes decarbonization and renewable
energy within businesses, while the "A More Social Portugal"
objective helps workers and companies adapt to evolving
circumstances.Compete 2030 aims to leverage available resources in
a streamlined, collaborative, and effective way, adhering to
principles of transparency, efficiency, and results-oriented
strategies. The Portugal 2030 Partnership Agreement was officially
approved on July 12, 2022 and signed two days later by the
Portuguese Government and the European Commission, with all
programs receiving approval by December 15, 2022.
EDM Option Extension
In addition, the Company has been
notified that Empresa de Desenvolvimento Mineiro ("EDM"), the
Portuguese State Mining Development Agency, has been granted an
extension to the term of its option agreement for up to a 15%
interest in the Lagoa Salgada Project (the "Project"). The
extension has been granted by Ascendant's 80% owned
subsidiary, Redcorp, and extends the deadline for exercise from
September 30, 2024 to 120 days from the date on which the following
conditions are satisfied: (i) issuance of the Environmental Impact
Statement on the Project, and (ii) completion of the optimization
study of the Project's feasibility study clarifying technical and
metallurgical matters (the "EDM Option").
If EDM exercises the EDM Option,
then Ascendant is entitled to exercise call options causing the
transfer from the Company of the 20% Carried Interest ("CI") free
carried interest quotas of the Lagoa Salgada concessionaire,
Redcorp, to Ascendant such that Ascendant would continue to own an
80% interest in the Project and MF&I would hold a net 5% CI.
M&FI has the right, but not the obligation, to exercise a put
option commencing on the date on which EDM makes its election and
terminating four (4) months thereafter, for Ascendant to purchase
all of the Redcorp quotas then held by M&FI. The put price
would be an amount in US dollars, payable in cash, equal to 5% of
the post-tax net present value (at a 10.5% discount rate) of the
Project provided in the then current feasibility study.
If the EDM Option is fully exercised
and the Put Option is also exercised, Ascendant would hold an 85%
interest in the Project and EDM would hold a 15% fully contributing
interest, with each party required to contribute pro rata, subject
to standard dilution clauses.
About the University of Évora (Geosciences
Department)
The Department of Geosciences at the
School of Science and Technology, University of Évora, is a
scientific and educational unit dedicated to ongoing research,
teaching, community outreach, and offering specialized services to
the public.
Review of Technical Information
The scientific and technical
information in this press release has been reviewed and approved
by Joao Barros, BSc (Engineering), MSc (Geology),
who has more than 18 years of relevant experience in the field of
activity concerned. Mr. Barros is a Member of the Portuguese
Engineers Association. Mr. Barros is employed by Redcorp
Empreedimentos Mineiros, Lda., a 20% owned subsidiary of M&F,
and has consented to the inclusion of the material in the form and
context in which it appears.
The scientific and technical
information contained in this release in relation to metallurgical
test work has been approved and verified by Mr. David Castro López
(MIMMM), who serves as Process Engineer at Minepro Solutions and is
a "Qualified Person" in accordance with National Instrument 43-101
- Standards of Disclosure for Mineral Projects.
FOR MORE INFORMATION:
Jacques Vaillancourt, Mineral &
Financial Investments Ltd. +44
780 226 8247
Katy Mitchell and Sarah Mather, Zeus
Capital
Limited
+44 203 829 5000
Jon Belliss, Novum Securities
Limited
+44 207 382 8300
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 (MAR) as in force in the United Kingdom pursuant to
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via Regulatory Information Service (RIS), this
inside information is now considered to be in the public
domain.