Globex Mining (TSX:GMX) Enterprises Inc., a company traded on the TSX and OTCQX International, recently announced significant progress in the development of its Mont Sorcier royalty property located near Chibougamau, Quebec. Cerrado Gold Inc., with advisory services from SD Capital Advisory Ltd and GKB Ventures Ltd, has appointed Toronto Dominion Bank (TSX:TD) (NYSE:TD Bank) as the Mandated Lead Arranger (MLA) for project financing.
The selection of TD Bank follows a competitive tender process that began on September 5, 2023, to identify an MLA to manage the project's financing needs. This process culminated in the announcement on October 18, 2023, of a potential UK Export Finance (UKEF)-backed non-recourse project financing package worth up to $598 million over an eleven-year term. This substantial financial commitment is aimed at covering approximately 70% of the anticipated capital expenditures for the Mont Sorcier Iron and Vanadium Project.
TD Bank's extensive experience with Export Credit Agency finance and existing relationship with UKEF were key factors in their appointment. The bank's expertise is expected to be instrumental in navigating the complexities of international project financing.
Globex retains a one percent Gross Metal Royalty on all iron production from Mont Sorcier, ensuring a steady revenue stream from the property's output. The company's President & CEO, Jack Stoch, a Qualified Person under NI 43-101 standards, has confirmed these developments and emphasized that detailed risk discussions related to forward-looking statements are available through SEDAR filings.
This strategic move by Globex and Cerrado Gold Inc. signifies an important step towards securing the necessary funds for the advancement of Mont Sorcier, promising to enhance shareholder value through continuous benefits from the iron production royalty.
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