VANCOUVER, British Columbia,
September 5, 2014 /PRNewswire/ --
Capstone Mining Corp. ("Capstone") (TSX: CS) today announced
that it intends to offer $300 million
of Senior Notes maturing in 2022 (the "Notes"), subject to market
and other customary conditions. Capstone intends to use the net
proceeds of the Notes to repay borrowings under its existing credit
facilities. Citigroup is Lead Underwriter and Joint Global
Co-ordinator, and Wells Fargo Bank is Joint Global Co-ordinator for
the Notes.
In conjunction with the closing of the Notes, Capstone has
arranged for a new $300 million
Senior Secured Revolving Credit Facility ("SSRCF") to replace its
existing $200 million senior secured
corporate revolving term facility and $200
million senior secured reducing revolving corporate credit
facility. Lenders in the new SSRCF include the Bank of Nova Scotia (Lead Arranger and Administrative
Agent), Canadian Imperial Bank of Commerce (Syndication Agent),
Citigroup, Wells Fargo Bank, Bank of Montreal, Export Development Bank and
Mizuho Bank. The new SSRCF has a
four year term, maturing in September
2018, with an interest rate of US LIBOR plus 2.25%
(adjustable in certain circumstances) and a standby fee of 0.51% on
the undrawn balance of the facility.
The Notes will be offered and sold in the United States only to qualified
institutional buyers in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the "Securities Act"),
and outside the United States in
reliance on Regulation S under the Securities Act. The Notes will
be offered and sold in Canada on a
private placement basis pursuant to certain prospectus
exemptions.
The offer and sale of the Notes will not be registered under the
Securities Act and the Notes may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws. This news release shall not constitute an offer to sell or
the solicitation of an offer to buy the Notes, nor shall there be
any offer or sale of the Notes in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company,
focused on copper. We are committed to the responsible development
of our assets and the environments in which we operate. Our three
producing mines are the Pinto Valley copper mine located in
Arizona, US, the Cozamin
copper-silver mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two
copper development projects; the large scale 70% owned copper-iron
Santo Domingo project in Region
III, Chile, in partnership with
Korea Resources Corporation, and the 100% owned copper-zinc Kutcho
project in British Columbia,
Canada, as well as exploration properties in Chile. Using our cash flow and strong balance
sheet as a platform, Capstone's strategy is to continue to grow
with mineral resource and reserve expansions and exploration, and
through acquisitions in politically stable, mining-friendly
regions. We will pace our growth with our financial capacity,
ensuring we retain, as a priority, sufficient financial flexibility
to meet the requirements of our existing operations and our
committed development projects, while maintaining an adequate
cushion to deal with market volatility and operating risks inherent
in the mining industry. Our headquarters are in Vancouver, Canada and we are listed on the
Toronto Stock Exchange (TSX).
Cautionary Note Regarding Forward-Looking
Information
This document may contain "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"). These forward-looking statements are
made as of the date of this document and the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements, except as required under applicable
securities legislation.
Forward-looking statements relate to future events or future
performance and reflect Company management's expectations or
beliefs regarding future events and include, but are not limited
to, statements related to completion of the Notes and the SSRCF
transactions, statements with respect to the estimation of mineral
reserves and mineral resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, capital expenditures, success of mining
operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance
coverage. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "outlook", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
In this document, certain forward-looking statements are identified
by words including "may", "future", "expected", "intends" and
"estimates". By their very nature forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
risk that the financing may not be completed on the terms expected
or at all; a change in the Company's credit rating; risks related
to actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices
of resources; possible variations in ore reserves, grade or
recovery rates; accidents, dependence on key personnel, labour pool
constraints, labour disputes; availability of infrastructure
required for the development of mining projects; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; and other risks of the
mining industry as well as those factors detailed from time to time
in the Company's interim and annual financial statements and
management's discussion and analysis of those statements, all of
which are filed and available for review under the Company's
profile on SEDAR at http://www.sedar.com. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. The Company provides no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
For further information:
Cindy Burnett, VP, Investor
Relations and Communications
+1-604-637-8157
cburnett@capstonemining.com
SOURCE Capstone Mining Corp.