| Minera IRL Provides Update on Ollachea Financing Negotiations and Existing Debt Facilities | |
| | |
|
LIMA, PERU--(Marketwired - Jun 30, 2014) - Minera IRL Limited ("Minera IRL" or the "Company") (IRL.TO)(MIRL.L)(MIRL.L), the Latin America gold mining company, is providing an update on financing negotiations for the construction of the Ollachea Gold Mine and the existing Finance Facility with Macquarie Bank. Following extensive technical due diligence and in accordance with a debt financing mandate, the Company has received a Committed Letter of Offer from Macquarie Bank for a senior Project Loan Facility for $100 million. Following the consolidation of the existing $30 million Macquarie Finance Facility, this would provide $70 million of new funds towards the construction of the Ollachea Gold Mine. As per Minera IRL's 4 June 2014 press release, a recently completed optimization of the 2012 Ollachea Gold Project Definitive Feasibility Study reported that the estimated initial capital cost to build the Ollachea Project is $164.7 million, including a 12% contingency. The Company will also need to fund an additional $12 million of working capital for IGV (General Sales Tax) for a total pre-production capital of approximately $177 million. As a result, the Company continues to advance discussions with various parties to obtain the balance of the funding required. Sources of additional financing may include, but are not limited to, the sale of a production royalty, the sale of a royalty stream, subordinated debt instruments, the sale of an interest in the project or equity financing. Until such time as there is more certainty with respect to the sources of the remaining funding required, the Company does not feel it is in a position to execute the Committed Letter of Offer. Accordingly, the Company is now targeting the completion of financing negotiations by the end of the third quarter of 2014 and has extended its debt financing mandate with Macquarie Bank. With respect to the existing $30 million Macquarie Finance Facility that was due to mature on 30 June 2014, the Company has negotiated with Macquarie Bank to extend the term of the loan by one year to 30 June 2015. In addition to the existing terms, which will remain unchanged, there will be an upfront fee of $1.5 million and the Company will issue 26 million options with an exercise price that will be priced in the context of the market to Macquarie Bank at a later date that is subject to regulatory approval and final documentation. The existing 18.8 million options currently held by Macquarie Bank will be cancelled when the new options are issued. |
|
|
Minera IRL
|
|
PRODUCER |
CODE : MIRL.L |
ISIN : JE00B1HNYF12 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Minera IRL is a gold producing company based in Peru. Minera IRL develops gold and silver in Argentina and in Peru, and holds various exploration projects in Peru. Its main asset in production is CORIHUARMI in Peru, its main assets in development are GOLDEN ZONE PROPERTY in Peru and DON NICOLAS in Argentina and its main exploration properties are PAN DE AZUCAR, DUTCH FLAT, WINNEMUCCA MOUNTAIN, AWAKENING, CHERT CLIFF, SUMMIT PROJECT, ESCONDIDO and EAST SANTA CRUZ in Argentina, CATA PRETA, OVERLAND PASS, SCRAPER, WHITE CANYON MINE, SOUTH ESTELLE, UTAH CLIPPER, CRESTVIEW, LAURA PROPERTY, WHITE HORSE NORTH, RED HILLS PROPERTY, PETE'S SUMMIT, GUILD PROJECT, CLARA MORO and FOUR METALS PROPERTY in Brazil, HUAQUIRCA, VECA PROJECT, BETHANIA, OLLACHA and QUILAVIRA in Peru, FRONTERA in Chile and OXFORD LAKE, COTE ARCHIE LAKE, BOLO and DEL ORO in Canada. Minera IRL is listed in Canada and in United Kingdom. Its market capitalisation is GBX 809.0 millions as of today (US$ 1.2 billions, € 1.1 billions). Its stock quote reached its highest recent level on January 07, 2011 at GBX 96.00, and its lowest recent point on August 28, 2015 at GBX 0.25. Minera IRL has 231 130 000 shares outstanding. |