Subscribe for Updates:
Enter your email below to receive email updates
Nov 20, 2014
Mindoro Joint Venture Acquires US$8 Million Loan for Agata Project
EDMONTON, ALBERTA, November 20, 2014 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today announced that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which Mindoro holds a 40% interest, has received a Letter of Advice from China Banking Corporation ("Chinabank") granting an US$8 million term loan facility (the "Facility") to support AMVI's high iron/low nickel direct shipping ore ("DSO") operations and exploration work at the Agata project, located in northern Mindanao, the Philippines.
In addition to the Chinabank US$8 million Facility, AMVI has also received advances totaling US$3 million from Tewoo Hoperay (Singapore) Pte. Ltd, a subsidiary of Tianjjn Hoperay Mineral Limited Company, a major Chinese State Owned Enterprise, as part of offtake agreements signed in June and August 2014, to sell a total of 1.5 million wet metric tonnes of high iron/low nickel DSO. This brings the total amount of funding that AMVI is able to secure for the project to US$11 million. AMVI expects to be able to arrange similar commitments for additional funds in the future, if necessary.
If AMVI draws upon the Facility, it will use the funds to ramp up operations at the Agata DSO project, to fund detailed exploration programs and resource updates at the Agata nickel laterite and limestone projects, and for general working purposes. Details of these programs will be announced in the upcoming weeks.
"The ability of the Agata joint venture to secure this substantial funding should send a positive signal to the market," stated Penny Gould, CEO of Mindoro. "With the high-iron DSO operations now underway, this further funding will allow the joint venture to unlock additional value from the Agata project through increasing the high-iron DSO production, updating the nickel laterite resource, and commencing work on the limestone DSO project."
TERMS OF THE LOAN FACILITY
The term of the Chinabank Facility is three years, with a six-month grace period before repayments of the principal are to commence, spread equally over 10 quarterly periods, beginning at the end of the third quarter. The interest rate of the Facility is fixed at a competitive rate for three years, payable quarterly in arrears, to start at the end of the first quarter from the initial drawdown date. The Facility is also accompanied by an additional PHP10 million Domestic Bills Purchase ("DBP") Line available to AMVI at prevailing interest rates up to June 30, 2015.
The Facility and DBP contemplates that the obligations of AMVI under those instruments will be secured by the suretyship of Prime Asset Venture Inc. (Prime is 68.32% owner of TVI Resource Development (Phils.), Inc. ("TVIRD"); TVIRD holds a 60% interest in AMVI and is the project operator), pledge of AMVI shares held by TVIRD, assignment of AMVI's rights on the operating agreement between AMVI and Minimax Mineral Exploration Corporation, assignment of AMVI's rights and receivables in the Offtake Agreement of Limonite Nickel Ore, and assignment of AMVI's rights in the Contract for Services. The Chinabank Facility remains subject to approval by the AMVI Board.
Penny Gould, CEO
Phone: +1.780.413.8187 (ext. 1)
Clayton Northey, CFO
Phone: +1.780.413.8187 (ext. 2)
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and Frankfurt Stock Exchange (WKN 906167). Mindoro has a 15% interest in the Agata Mining Joint Venture and 75% interest in the Agata Processing Joint Venture with options to acquire an additional 25% interest in both the Agata Mining and Processing Joint Ventures. Mindoro also holds 75% interest in the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVI Resource Development (Phils.), Inc. ("TVIRD") has the option to earn up to a 60% interest in the Agata Processing and Pan de Azucar projects by meeting the earn-in requirements outlined in the June 24, 2013, press release, which include producing a definitive feasibility study for a nickel processing facility. Mindoro also holds 75% interest and an option to acquire an additional 25% in the Tapian San Francisco Copper-Gold Project, Mindanao.
Neither 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.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled", "to be", "will be" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the date of such statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel.
Accordingly, readers should not place undue reliance upon forward-looking statements and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking information respecting cash flows anticipated from future production of high-iron/low nickel DSO at the Agata Mining Project is based upon management's forecasts of trends in prices of DSO, current mining rates of DSO from the Agata Mining Project, estimates of the size of the DSO reserves at Agata Mining Project, the current development plan for Agata Mining Project, TVIRD's current budget and overall strategy for Agata Mining Project, which plans, budget and strategy are all subject to change. Forward-looking information respecting the anticipated timing of future shipments of DSO from the Agata Mining Project, is based upon current mining rates of DSO from the Agata Mining Project, the terms of the third party offtake agreement for the purchase of DSO produced at the Agata Mining Project, estimates of the size of the DSO reserves at the Agata Mining Project, the current development plan for the Agata Mining Project, TVIRD's current budget and overall strategy for the Agata Mining Project, which plans, budget and strategy are all subject to change. The forward-looking statements contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2013, which was filed on SEDAR on March 31, 2014 and is available on the Company's website at www.mindoro.com and under the Company's profile at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.
You can view the Next Press Releases item: Tue Nov 25, 2014, Mindoro Joint Venture Nears Completion of Definitive Feasibility Study on Agata Nickel Processing Project
You can view the Previous Press Releases item: Tue Nov 18, 2014, Mindoro Joint Venture Completes Second DSO Shipment
You can return to the main Press Releases page, or press the Back button on your browser.