🕐19.04.12 - 17:27 Uhr
MANDATE AWARDED FOR $640 MILLION KITSAULT PROJECT FINANCING
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News Release - Thursday, April 19, 2012
Mandate Awarded for $640 Million Kitsault Project Financing
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Vancouver, British Columbia: Avanti Mining Inc.
(TSX-V: AVT) (OTC:
AVNMF.PK) ("Avanti" or the "Company") is pleased to announce that it
has entered into a mandate letter with five lenders for up to $640
million of project financing to develop the Kitsault molybdenum mine.
The lending group is comprised of:
- UniCredit Bank AG ("UniCredit")
- KfW IPEX-Bank GmbH ("KfW")
- Export Development Canada ("EDC")
- Korea Development Bank ("KDB"), and
- Caterpillar Financial ("CAT")
The mandate letter has preliminary approval of each of the proposed
lenders but requires the completion of lenders due diligence, final
credit approval and negotiation and execution of a loan agreement under
Ontario law.
The key terms of the mandate letter are $560 million senior debt for a
term of 12 years plus $80 million in the form of a standby cost
over-run facility (if needed) with a term of 8 years.
The interest rate
is LIBOR (London Interbank Offer Rate) based, loan repayments are
semi-annual and there is a prepayment provision of a portion of excess
free cash flow.
The funding under this facility will be subject to the customary
conditions precedent for a financing of this type including the
issuance of an environmental certificate under the Canadian
Environmental Assessment Act and the BC Environmental Assessment Act,
the necessary permits required for construction and equity investment
by Avanti and its strategic partner.
There is no certainty that the
transaction contemplated in the mandate letter will be successfully
completed.
"This is a key milestone for Avanti to be able to arrange a very
substantial portion of the $850 million total financing needed for the
Kitsault mine," stated Mr.
A.J.
Ali, CFO.
"It reflects significant
financial risk mitigation for a strategic partner, shareholders and
other stakeholders".
"I am delighted that Kitsault has entered into this mandate for project
financing.
This confirms our belief that Kitsault is a world class
molybdenum deposit in a well known mining jurisdiction and can be
developed in a manner that protects and supports the local
communities," said Mr.
Craig Nelsen, President & CEO.
Avanti Mining Inc.
is focused on the development of the past producing
Kitsault Mine Project located north of Prince Rupert in British
Columbia.
In late 2010, Avanti completed the Kitsault Feasibility Study
on the Kitsault Mine Project, dated December 15, 2010, prepared by AMEC
Americas Limited that showed Proven and Probable Reserves of 232.5
million tonnes averaging 0.081% molybdenum.
Ken Collison, P.
Eng.,
Senior Vice President Project Development and a Qualified Persons as
defined by NI 43-101, is responsible for the technical information in
this press release.
For further information, please visit www.avantimining.com, or contact:
A.J.
Ali, Chief Financial Officer, 303-565-5491, extension 4472, or
Craig J.
Nelsen, Chief Executive Officer, 303-565-5491, extension 4471
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain
forward-looking information concerning the business of Avanti Mining
Inc.
(the "Corporation").
All statements, other than statements of
historical fact, in particular statements herein about the timing and
advancement of the Corporations Environmental Assessment application
for the Kitsault Project completion of the debt financing, the
obtaining of permits and the equity investment by Avanti and a
strategic partner are forward-looking statements.
These forward-looking
statements are based on the opinions of management at the date the
statements are made and are based on assumptions and subject to a
variety of risks and uncertainties and other factors that could cause
actual events to differ materially from those projected in
forward-looking statements.
Important factors that could cause actual
results to differ materially from the Corporations expectations
include the need for cooperation of government agencies and native
groups in the preparation of the EA application, the fact that the
Corporations employees and consultants may divide their time between
other projects and other risks and uncertainties disclosed in the
Corporations Annual Information Form for the year ended December 31,
2010, which is available at www.sedar.com.
The Corporation is under no
obligation to update forward-looking statements if circumstances or
managements opinions should change, excepting as required by
applicable securities laws.
The reader is cautioned not to place undue
reliance on forward-looking statements.
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Copyright (c) 2012 AVANTI MINING CORP.
(AVMI) All rights reserved.
For more information visit our website at http://www.avantimining.com/
or send mailto:
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