Crowflight Finalizes Metals Price Protection Requirements for Debt Facility
30 July 2008 - 10:07PM
Marketwired
TORONTO, ONTARIO (TSX VENTURE: CML) today announced that it has
begun drawing down on the $45 million Final Tranche Loan of its
debt facility being used to fund development of the Bucko Lake
Nickel Project near Wabowden, Manitoba.
Of the $45 million, $15.3 million will be used to pay the $15
million bridge facility plus interest, with the remainder to be
applied to completing construction and ramp up of the Bucko Lake
Mine. This credit facility requires a price protection strategy be
put in place to limit the risk against falling nickel prices. On
July 28, 2008, the Company entered into a forward sales contract
agreements with the lender to implement a risk management strategy
to manage commodity price exposure on nickel sales. Forward sale
contracts were entered into from the fourth quarter of 2008 to the
fourth quarter of 2012 for a total of 20.5 million pounds of nickel
at a price of $8.49/pound.
Details are as follows:
- 2008 - 0.40 million pounds Nickel
- 2009 - 3.88 million pounds Nickel
- 2010 - 5.73 million pounds Nickel
- 2011 - 5.54 million pounds Nickel
- 2012 - 4.94 million pounds Nickel
This represents approximately 21% of the current NI 43-101
compliant proven and probable reserve base of 97.2 million pounds
of contained nickel at Bucko. Further increases in the mineable
reserve base will result in lower overall hedge percentages.
The forward sales contracts are considered derivative financial
instruments and are used for risk management purposes and not for
generating trading profits.
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 fully-funded Bucko Lake
Nickel Project located near Wabowden, Manitoba into production by
the third quarter of 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". There can be no assurance that such statements will
prove to be accurate; actual results and future events could differ
materially from such statements. 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: 269.6MM
Fully Diluted: 308.3MM
52-Week Trading Range: C$0.32 - $0.93
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Crowflight Minerals Inc. Mike Hoffman President and
CEO (416) 861-2964 Crowflight Minerals Inc. Heather Colpitts
Manager, Investor and Public Relations (416) 861-5803 Email:
info@crowflight.com Website: www.crowflight.com
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