Crowflight Secures $55 Million Debt Facility to Complete Bucko Lake Nickel Mine Development
January 10 2008 - 9:12AM
Marketwired
TORONTO, ONTARIO (TSX VENTURE: CML) is pleased to announce that
it has obtained an offer for up to Cdn$55 million in debt finance
from RMB Resources Inc. (RMB) of Lakewood, Colorado. RMB is
arranging the finance as Agent for FirstRand Ireland Plc, the
Lender and underwriter of the debt finance package.
The proposed $55 million facility will be used to finance the
remaining construction and start-up of the Bucko Lake Nickel Mine
near Wabowden, Manitoba. The proposed loan is subject to final
approval by the FirstRand Underwriting Committee among other
conditions typical of a facility of this nature. RMB is a
well-known arranger and provider of mining project finance.
FirstRand is one of South Africa's most prominent financial
institutions. Auramet Trading, LLC of Fort Lee, New Jersey is
advising Crowflight on this transaction.
Mike Hoffman, Crowflight's President and CEO commented:
"Securing this debt facility is a critical step in bringing the
Bucko Lake Nickel Mine to fruition. By financing the remainder of
this project by a debt facility, rather than equity, we are
utilizing the most capital efficient means of financing that offers
the least amount of dilution. These funds will enable us to
complete construction at Bucko and commence production as planned
by mid-2008."
The debt facility will be divided into three tranches. The first
tranche of $10 million is a secured loan with attaching warrants.
The term of the warrants is 36 months and the exercise price is to
be determined in the context of the market at the time of
satisfaction of certain condition precedents. The proceeds of the
warrant conversion are to be used to pay off the Tranche 1 debt
facility.
The second bridge tranche is a $15 million short term secured
loan, which is to be repaid by drawing upon funds from the final
tranche, a senior, secured $45 million debt facility. The senior
tranche of $45 million may be drawn once permits for Bucko are in
place. In total, this gives Crowflight access to $55 million to
fund the Bucko Lake Nickel Mine.
In addition, a total of one million warrants will also be issued
with an exercise price to be determined in the context of the
market at the time of satisfaction of certain condition precedents.
The term of the warrants is 24 months.
Crowflight Minerals - Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX VENTURE: CML) is a Canadian junior
mining exploration and development company focused on nickel,
copper and Platinum Group Mineral ("PGM") projects in the Thompson
Nickel Belt and Sudbury Basin. The Company currently owns and/or
has under option approximately 800 square kilometres of exploration
and development properties in Manitoba and Ontario.
Crowflight's priority is to bring the Bucko Nickel deposit
located near Wabowden, Manitoba into production by mid-2008.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
approval and finalization of the debt facility, the benefits of the
facility, availability of financing, construction and permitting
timelines and costs of timing of production. There can be no
assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such
statements. Factors that could cause actual results to differ
materially include, among others, metal prices, competition, risks
inherent in the mining industry, and regulatory risks. Most of
these factors are outside the control of the Company. Investors are
cautioned not to put undue reliance on forward-looking information.
Except as otherwise required by applicable securities statutes or
regulation, the Company expressly disclaims any intent or
obligation to update publicly forward-looking information, whether
as a result of new information, future events or otherwise.
Total Shares Outstanding: 249.7MM
Fully Diluted: 286.5MM
52-Week Trading Range: C$0.35 - $1.35
The TSX Venture has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Crowflight Minerals Mike Hoffman President and CEO
(416) 861-2964 Crowflight Minerals Heather Colpitts Manager,
Investor and Public Relations (416) 861-5803 Email:
info@crowflight.com Website: www.crowflight.com
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