🕐30.07.14 - 13:54 Uhr
AVANTI MINING SIGNS MANDATE LETTER FOR US$612 MILLION DEBT FINANCE FACILITY
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Re: News Release - Wednesday, July 30, 2014
Avanti Mining Signs Mandate Letter For Us$612 Million Debt
Finance Facility
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Toronto, Ontario: Avanti Mining Inc.
(TSX-V: AVT) ("Avanti" or the
"Company") is pleased to announce that it has entered into a debt
financing mandate letter (the "Mandate Letter") with a syndicate of six
lenders (the "Lenders") pursuant to which the Lenders are proposing to
provide secured debt finance facilities for US$612 million to develop
the Kitsault molybdenum mine.
The Lenders consists of BNP Paribas,
Caterpillar Financial Services Corporation, Export Development Canada,
Korea Development Bank, Mizuho Bank Ltd.
and UniCredit Bank AG.
The Mandate Letter and related term sheet establishes the terms under
which the Banks have been appointed to deliver a project finance
facility of US$612 million and is subject to due diligence, loan
documentation, credit and certain other approvals.
Final credit
approval for the facility is expected in September 2014.
The facility set out in the term sheet is comprised of US$500 million
senior debt for a term of 10.5 years, US$42 million in equipment
finance for a term of 5 years and $70 million in the form of standby
cost over-run facilities for a term of 8 years.
The interest rate is
LIBOR based, loan repayments are semi-annual or quarterly (for
equipment finance) and there are mandatory prepayment provisions of a
portion of excess free cash flow.
The facility will include customary
provisions for a financing of this type, including fees,
representations and warranties, covenants, events of default and
security customary for this type of financing.
The funding under this facility will be subject to the customary
conditions precedent for a financing of this type including an equity
financing component arranged by Avanti, which the Company continues to
pursue through various options, including the sale of a silver stream
and/or investment by a strategic partner.
"The project finance facility is a major component of Avantis
financing strategy.
We welcome the financial support of our banking
partners and we can now focus on advancing equity funding options to
complete our Cdn$818 million initial construction capital requirement
for Kitsault.
With the execution of offtake agreements with
ThyssenKrupp Metallurgical Products GMBH and SeAH M&S, the conclusion
of a Benefits Agreement with the Nisgaa Nation, the receipt of
construction and environmental approvals for the Kitsault Project,
commencement of construction activities at site and now the pending
agreement on the cornerstone project financing component, the Kitsault
project moves significantly closer to a positive production decision,"
stated Mr.
Gordon J.
Bogden, President and Chief Executive officer.
Avantis financial advisor in relation to the debt financing is
Northcott Capital.
Avanti is currently focused on the development of the past producing
Kitsault molybdenum mine located north of Prince Rupert, British
Columbia, as part of an overall strategy to develop properties and
projects that complement the steel commodity stream.
For further information, please visit www.avantimining.com, or contact:
Shawn Howarth, Vice President, Corporate Development and Investor
Relations (416) 847-0376
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.
All statements, other than statements of historical fact, included
herein including, without limitation; statements related to the
completion of the project financing pursuant to the mandate letter and
statements relating to arranging equity financing for the project 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 Companys expectations include the ability to negotiate and
finalize binding agreements for the facility, the satisfaction of any
conditions precedent to the facility, including the receipt of credit
approval by the Lenders, the availability of equity financing at terms
acceptable to the Company, commodity price and operational risk
inherent in the mining industry; and other risks and uncertainties
disclosed in the Companys MD&A and the Annual Information Form for the
year ended December 31, 2013, which are available at www.sedar.com.
The
Company is under no obligation to update forward- looking statements if
circumstances or managements opinions should change, except as
required by applicable securities laws.
The reader is cautioned not to
place undue reliance on forward-looking statements.
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