Ascendant Resources Announces Sale of Marginal Zinc Sales Royalty at the El Mochito Mine for US$700,000
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Strengthened financial position to advance exploration program at Lagoa Salgada
(All dollar amounts are in U.S. dollars (“$”) unless otherwise specified)
TORONTO, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX: ASND) ("Ascendant" or the "Company”) is pleased to announce the sale of its marginal zinc sales royalty (the “Royalty”) to Ocean Partners UK Limited for $700,000, payable upon closing of the transaction. The consideration attained upon the sale of American Pacific Honduras S.A de C.V ("AMPAC"), in April 2020 included the Royalty on zinc sales from the El Mochito mine in the amount of $0.0125/lb on any lb of Zn sold by AMPAC for a price greater than $1.15/lb between closing date and December 31, 2029.
The proceeds from the sale of the Royalty will be used to further advance the Company’s exploration program at Lagoa Salgada and for general corporate purposes. The exploration program underway consists of 2,700m of drilling and downhole IP surveys which will be completed in several phases. The main objective of the proposed program is to significantly increase and upgrade tonnage at the copper-rich South Zone, which remains open in all directions according to geological data collected during the Company’s previous exploration activities.
Chris Buncic, President & CEO of Ascendant, stated, “The opportunity to monetize the zinc royalty at El Mochito for an attractive sum comes at a great time for Ascendant, as we shift our focus to our interests in Portugal at Lagoa Salgada and the strong geological potential we see on the Iberian Pyrite Belt. We strongly believe that Lagoa Salgada has the same features as other highly profitable mines in the area, and we are eager to put these funds to work as we expand upon the copper-rich stockwork mineralization in the South Zone during the current program.”
About Ascendant Resources Inc.
Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Through focused exploration and aggressive development plans, the Company aims to unlock the inherent potential of the project, maximizing value creation for shareholders.
Lagoa Salgada contains over 12.8 million tonnes of M&I Resources and 10.3 million tonnes in Inferred Resources and demonstrates typical mineralization characteristics of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective step-out targets across the large 10,700ha property concession. The project also demonstrates compelling economics with scalability for future resource growth in the results of the Preliminary Economic Assessment. Located just 80km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional Infrastructure. Ascendant holds a 21.25% interest in the Lagoa Salgada project through its 25% position in Redcorp - Empreendimentos Mineiros, Lda, (“Redcorp”) and has an earn-in opportunity to increase its interest in the project to 80%. Mineral & Financial Investments Limited owns the additional 75% of Redcorp. The remaining 15% of the project is held by Empresa de Desenvolvimento Mineiro, S.A., a Portuguese Government owned company supporting the strategic development of the country’s mining sector. The Company’s interest in the Lagoa Salgada project offers a low-cost entry to a potentially significant exploration and development opportunity, already demonstrating its mineable scale.