Appalaches Announces Closing of the Second Tranche of Its US$10 M Loan Financing Secured for Gold Production at Dufferin Mine
03 December 2013 - 12:43AM
Marketwired
Appalaches Announces Closing of the Second Tranche of Its US$10 M
Loan Financing Secured for Gold Production at Dufferin Mine
RIMOUSKI, QUEBEC--(Marketwired - Dec 2, 2013) - Ressources
Appalaches (TSX-VENTURE:APP)(FRANKFURT:OU3) is pleased to announce
the closing (the "Closing") of the second tranche of its previously
announced loan financing of US$10 M provided by New York based
Lascaux Resource Capital Partners, LLC. A first tranche ("Tranche
A") of US$2.5 M, less third party fees and expenses, was advanced
to the Company in May 2013 and the second tranche ("Tranche B") of
US$7.5 M, less prepaid interest of US$800,000, a structuring
payment of US$300,000 and other third party fees and expenses, was
advanced at Closing.
Path to Production
The loan financing of US$10 M is expected to provide sufficient
funds to complete the refurbishment of the Dufferin Mine and
advance the project to gold production. Start of commissioning is
currently projected for approximately 4 months, with another 4
months of mining & milling ramp-up operations.
The targeted first stage of production stands at 300 tonnes per
day (TPD). This targeted output was reviewed by MineTech
International as part of the financing due diligence process.
Financing Details
The financing of US$10 M, is being made through an Ontario
limited partnership (the "Ontario LP"). The financing will bear
interest at a rate of 8% per annum starting the 9th month after
Tranche B is advanced and is payable in cash. The financing is
amortized by the delivery of a total of 10,125 ounces of gold over
a period of 27 months starting the 9th month following the advance
of Tranche B.
In consideration for the financing, the Company issued 1,000,000
shares to the Ontario LP in May 2013 and issued an additional
3,500,000 shares to the Ontario LP at Closing of Tranche B.
The financing, which is secured by the Company's assets, will be
used to resume gold production at the Dufferin Mine project in Nova
Scotia (see press releases of November 28, 2012 and March 4,
2013).
The Company has entered into an off-take agreement with the
Ontario LP for all production from the Dufferin Mine on market
based pricing. The Company will have the option to buy back the
off-take for US$2 M one year after the fulfillment of the 10,125
ounces of gold deliveries.
Axiom Capital Management Inc. a broker-dealer based in New York,
is receiving a finder's fee consisting of an aggregate 5,000,000
shares of the Company, of which 2,000,000 shares were issued in May
2013 and 3,000,000 shares were issued at Closing, and cash equal to
5% of the amount advanced under the Loan.
About MineTech International
MineTech International Limited has served the Canadian and
International mining markets since its founding in 1989. Staffed by
experienced engineers and geologists, it is located in Halifax,
Canada.
MineTech is an independent, employee-owned consultancy capable
of delivering professional results for a wide range of mining and
geological problems, including assistance with mine exploration,
design, permitting and operations.
About Lascaux Resource Capital Partners, LLC
Lascaux Resource Capital Partners, LLC is the general partner of
Lascaux Resource Capital Fund I L.P. which is dedicated to
providing production based financing to enable smaller mining
companies to put their assets into production.
About Ressources Appalaches
Since it was created in 1994, the goal of Ressources Appalaches
has been to discover and develop deposits of base and precious
metals in Canada with an expertise targeted towards the Appalachian
geological formation in Québec and Nova Scotia. The Company is
mainly focused on the exploration and development of the Dufferin
Gold Mine in Nova Scotia.
Photos of the Dufferin Mine and tis facilities are available on
the Company's website at: www.ressourcesappalaches.com.
The above mining & milling information of this release have
been verified by MineTech International's Patrick Hannon, M.A.Sc.,
P.Eng. and Douglas Roy, M.A.Sc., P.Eng., both reviewers are
independent of Ressources Appalaches.
The contents of this press release were prepared and reviewed by
Alain Hupé, Eng. a Qualified Person as defined in NI 43-101.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts any responsibility for the adequacy or
accuracy of this release.
This press release may contain forward-looking statements
that include elements of risk and uncertainty. Consequently, actual
results may differ substantially from those anticipated in such
statements. These risks and uncertainties are described in the
quarterly and annual reports, and in the documents submitted to the
securities administration.
Alain Hupe,
Eng.President418-724-0901info@ressourcesappalaches.comJean-Claude
MorelExecutive Vice-President &
COO418-724-0901info@ressourcesappalaches.com
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