Directors' Update on European Nickel Release
May 26 2010 - 5:34AM
UK Regulatory
TIDMRMLA
RNS Number : 5628M
Rusina Mining NL
26 May 2010
Wednesday 26th May, 2010
Rusina Mining NL
("Rusina" or the "Company")
European Nickel Release re Financing Mandate
Rusina Directors' Update
Please find attached a release from Rusina's proposed merger partner, European
Nickel PLC (AIM, PLUS: ENK), regarding the mandating of Société Générale and
UniCredit Bank AG to arrange a US$300m term loan and US$25m overrun facility for
the Çaldag project in Turkey.
Rusina's directors note that this is a significant positive step in the process
of obtaining the required debt funding for the construction of the Çaldag nickel
laterite heap leach project. The mandated lead arrangers have committed to fund
US$100 million between them and, the directors understand, there are substantive
expressions of interest from other financial institutions that will cover the
balance of the proposed debt facility.
The Rusina directors have also considered the recent announcement by European
Nickel with respect to the cancellation of the forestry permit for the Çaldag
mine, resulting from a ruling by the Manisa Administrative Court that the permit
was not constitutional due to discrepancy between the Forest Law and the Mining
Law. The directors note that a new Mining Law is expected to go before the
Turkish parliament imminently and are encouraged by European Nickels statements
that the re-issuance of the forestry permit should be straightforward and should
occur before the end of the third quarter 2010.
In view of the recent announcements and further expected information on the
complete Çaldag project financing, the Rusina directors consider that the scheme
of arrangement to merge with European Nickel PLC remains in the best interests
of all Rusina shareholders.
Following merger completion, the merged entity will have a nearly financed
project in Turkey, subject to forestry permit re-issuance which is expected
shortly. It will also have the Acoje nickel laterite heap leach project in the
Philippines, a permitted robust alternate project that could be fast tracked to
production due to synergies in design allowing all long lead items already
purchased for Çaldag to be transferred to Acoje should the need arise.
The Company confirms that the Shareholders Meeting has been advertised in
accordance with the Court Orders (as amended) and will take place on 2nd June
2010.
For further information, please contact:
Mark Hanlon Rusina Mining Tel: +61 8 9226
1111
Roland Cornish Beaumont Cornish Tel: +44 (0) 207 628 3396
Çaldag Project Financing Mandate Signed
26 May 2010 - London: Further to the announcement on 17 May 2010, European
Nickel PLC ("European Nickel" or the "Company") (AIM, PLUS: ENK) is pleased to
announce it has appointed Société Générale and UniCredit Bank AG ("UniCredit")
as the Initial Mandated Lead Arrangers ("IMLAs") for the funding of the Çaldag
nickel laterite project in Turkey.
Société Générale and UniCredit have signed a joint mandate letter and provided
an indicative term sheet to arrange a US$300 million term loan facility and
US$25 million over-run facility for the development of Çaldag on a best effort
basis. The IMLAs intend to commit US$50 million each subject to, inter alia, due
diligence, internal credit approvals and related documentation.
The Company, the IMLAs and their advisors have already started work to refresh
the previously drafted documentation and finalise any outstanding issues. In due
course, it is anticipated that a number of other financial institutions will
join the IMLAs and form a club of banks to complete the financing. Société
Générale was part of the original group of banks involved with the arranging of
the debt financing of Çaldag in 2006/2007.
Simon Purkiss, Managing Director, said "I am delighted that Société Générale and
UniCredit have agreed to be initial Mandated Lead Arrangers. We look forward to
working with them and towards closing the project financing of Çaldag by the end
of this year.
Along with our advisers, Endeavour Financial Corporation, we will continue to
fast track the securing of the project financing during the second half of
2010."
European Nickel will provide a further update on the financing process and
timeframe once the bank club has been completed.
The merger with Rusina Mining NL ("Rusina") is proceeding according to the
schedule announced on 23 April 2010 with the Rusina shareholders' meeting to
approve the merger being held on 2 June 2010 and the merger is expected to
become effective on 10 June. The second tranche of the placing, raising
approximately GBP6.7 million (US$9.6 million), is expected to be completed on 16
June.
European Nickel also announces that the Company's Nominated Adviser and Joint
Broker has undertaken a change of name from Canaccord Adams Limited to Canaccord
Genuity Limited following the acquisition by its parent company, Canaccord
Financial Inc., of Genuity Capital Markets, a leading independent advisory and
restructuring firm in Canada.
For more information, please visit www.enickel.co.uk or contact:
Simon Purkiss or Andrew Lindsay, European Nickel Tel:
020 7290 3130
Andrew Chubb or Tarica Mpinga, Canaccord Genuity Tel: 020
7050 6500
Alex Buck, BuckBias
Tel: 07932 740 452
Note to editors:
European Nickel (AIM, PLUS: ENK) is an emerging mid-tier nickel laterite
producer focused on growth. The Çaldag project in Turkey is the Company's
flagship asset with near-term production and will be the world's first
commercial scale nickel laterite heap leach operation. The Company is currently
in the process of merging with Rusina Mining, which will increase its nickel
laterite resource base and increase its ownership of the Acoje project in the
Philippines to 92%. Acoje is the Company's next heap leach development project.
Société Générale ("SG") is one of Europe's largest banking groups, with over
163,000 employees and 30 million clients in 82 countries. SG is a leader in the
mining finance sector with specialised mining finance teams located in London,
New York and Toronto. SG has a track record of arranging major international
mining finance transactions, across a wide range of client profiles and has
demonstrated its long term commitment to the mining sector. With a strong
international track record, SG's recognised in-house technical expertise and
risk management platforms allow it to provide its clients with a broad spectrum
of financing and risk management solutions.
UniCredit has been an active mining finance house for over 20 years catering to
the needs of its diverse and broad client base. Its deep rooted industry and
sector knowledge, coupled with its expertise in complementary banking and risk
management services, makes UniCredit a strong partner in financing the mining
and metals industries. UniCredit is a major international financial institution
with strong roots in 22 European countries as well as representative offices in
27 other markets, with approximately 10,000 branches and 160,000 employees.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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