Avanti Mining Closes US$50 Million Preconstruction Loan Facility
24 December 2013 - 12:30AM
Marketwired
Avanti Mining Closes US$50 Million Preconstruction Loan Facility
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 23, 2013) -
Avanti Mining Inc. (TSX-VENTURE:AVT)(PINKSHEETS:AVNMF) and its
wholly owned subsidiary Avanti Kitsault Mine Ltd. ("Avanti" or the
"Company") announces that further to the Company's press releases
dated October 31, 2013, November 22, 2013, December 4, 2013 and
December 19, 2013, the Company has closed its previously announced
US$50 Million Preconstruction loan facility (the "Facility") with
Resource Capital Fund VI L.P. ("RCF").
The purpose of the Facility is to provide the Company with
working capital to commence preconstruction activities at the
Kitsault project in anticipation of the project construction
starting immediately upon receipt of the requisite permits. In
addition, the Company used the proceeds of the Facility to repay
all principal and interest owing to CEF (Capital Markets) Ltd.
("CEF"), approximately US$10 million, under the Company's existing
loan facility, with RCF, Resources Capital Fund IV L.P. and CEF
dated July 2, 2013.
At closing, the Company drew down US$20 Million of the US$50
Million Facility, approximately US$10 Million was used to repay
CEF. The remaining US$30 Million available under the Facility may
be drawn upon according to the following schedule: US$10 million,
after January 31, 2014 and prior to May 30, 2014; US$10 million,
after March 31, 2014 and prior to May 30, 2014; and US$10 million,
after April 30, 2014 and prior to May 30, 2014.
The terms of the Facility are further described in the Company's
Management Information Circular dated November 21, 2013 available
on www.Sedar.com.
About Resource Capital Fund VI L.P.:
Resource Capital Fund VI L.P. ("RCF") is a private equity fund
with mandates to make investments exclusively in the mining sector
across a diversified range of hard mineral commodities and
geographic regions. RCF is managed by RCF Management L.L.C. which
has its principal office in Denver and additional offices in Perth,
New York (Long Island) and Toronto. RCF and Resource Capital Fund
IV L.P. have provided financing for Avanti to acquire and develop
the Kitsault deposit since 2008 and own approximately 38% of the
Company's issued and outstanding shares.
About Avanti:
Avanti acquired the past producing Kitsault molybdenum mine
located north of Prince Rupert in British Columbia in 2008 and has
been focused on its development ever since. It has spent the last
five years in a comprehensive environmental assessment process with
both the BC and Canadian governments, and with extensive
consultation with the First Nations. It received the BC
Environmental Assessment Certificate in March 2013 and the Company
expects the Canadian Environmental Assessment Approval shortly. All
the Federal review steps have been completed and the final decision
by the Federal Minister of Environment is pending. In April 2013
the Company applied for permits to commence construction and the
permitting process is well advanced. The Company is currently
awaiting the permits to start construction.
Neither the 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.
Forward-Looking Statements: This news release contains certain
forward-looking information concerning the business of Avanti
Mining Inc. All statements, other than statements of historical
fact, included herein including, without limitation, the use of
proceeds of the Facility, the Company's plans to arrange debt and
equity financing to build the Kitsault project, and the development
of the Kitsault project, are forward-looking statements. These
forward-looking statements are based on the opinions of management
at the date the statements are made and are based on assumptions
and subject to a variety of risks and uncertainties and other
factors that could cause actual events to differ materially from
those projected in forward-looking statements. Important factors
that could cause actual results to differ materially from the
Company's expectations include fluctuations in commodity prices and
currency exchange rates; uncertainties relating to interpretation
of drill results and the geology, continuity and grade of mineral
deposits; uncertainty of estimates of capital and operating costs,
recovery rates, production estimates and estimated economic return;
the need for cooperation of government agencies and native groups
in the exploration and development of properties and the issuance
of required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs or in construction projects and uncertainty of
meeting anticipated program milestones; uncertainty as to timely
availability of permits and other governmental approvals; results
of negotiations with a potential strategic partner and other risks
and uncertainties disclosed in the Company's Annual Information
Form for the year ended December 31, 2012, which is available at
www.sedar.com. The Company is under no obligation to update
forward-looking statements if circumstances or management's
opinions should change, excepting as required by applicable
securities laws. The reader is cautioned not to place undue
reliance on forward-looking statements.
Avanti Mining Inc.Craig J. NelsenExecutive
Chairman720-280-9450Avanti Mining Inc.Mark PremoChief Executive
Officer604-620-7670, extension 223Avanti Mining Inc.A.J. AliChief
Financial Officer604-620-7670, extension
222www.avantimining.com
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