ASX / MEDIA RELEASE
03 MARCH 2009
REDBANK PAYS OUT MACQUARIE BANK
High grade copper developer Redbank Mines
Limited (ASX: RBM) announced today it has completed refinancing arrangements
with its major shareholder, Stirling Resources (ASX: SRE) for an existing $1.5
million loan facility thereby paying out the Macquarie Bank Limited financing
arrangement.
Under the re-financing arrangement, the
Macquarie loan will be assigned to Stirling and
extended for two years, with an option to convert the loan to equity at a 30
day VWAP prior to conversion.
Redbank Managing Director Bruce Morrin
commented ?it is pleasing to be able to pay out the Macquarie
loan and have the strong backing of Stirling Resources. Macquarie
has been good supporters of Redbank and the payout now means all interests are
aligned with the company?s shareholders going forward?.
Redbank recently announced a fully
underwritten Rights Issue to raise $4.3 million which will enable the company
to undertake a significant, detailed exploration program on the substantially
underexplored Redbank copper tenements.
The Rights Issue is fully underwritten by
the Sydney based
boutique investment and advisory house, Arthur Phillip Pty Ltd and
sub-underwritten by Stirling Resources Limited.
Stirling Resources Managing Director
Michael Kiernan commented, ?This raising will strengthen the Redbank balance
sheet and enable a substantial exploration program to tap into what we believe
to be some exciting potential higher grade target areas?.
Redbank?s General Manager of Exploration,
Craig Hall, is finalizing a budget designed to deliver a doubling in minable
sulphide ore resources. Total exploration spend for 2009 is proposed at $1.9
million of which around 60% is direct drilling expenditure with a further $0.65
million proposed for mine development.
For further information, please contact:
Bruce Morrin
Warrick Hazeldine / Ryan McKinlay
Managing Director
Purple Communications
Tel: 0488 770 553
Tel: +61 (0)8 9485 1254
Mob: 0417 944 616 / 0408 347 282
About Redbank Mines
Redbank
Mines is an Australian based ASX-listed resource company (ASX: RBM) focused on
the development of the Redbank Copper Mine in the north east of the Northern
Territory.
The
project is located in the Redbank Mineral Field in the NT, where the Company
holds a substantial ground position. The region hosts significant economic
copper mineralization and is highly prospective for copper, cobalt, phosphate,
manganese and uranium.
The
Company acquired the Redbank Copper Mine in 2005, and has been generating some
cash flow from the treatment of high grade oxide stockpiles to produce a high
quality concentrate. The tenement package included numerous advanced copper
targets.
In
December 2007, Redbank secured an exploration joint venture with Glencore
International, one of the world?s largest commodity suppliers. The Company has
also signed an off-take agreement with Glencore for the life of mine, based on
marked based spot prices of copper.
Additional
information is available at www.redbankmines.com.au
About
Stirling Resources Limited
Stirling Resources Overview
Stirling
Resources Limited is a West Australian resources developer focusing on
investment and development of copper, zircon, coking coal, gold and iron ore
projects. The Company consists of highly experienced resource development and
mining personnel executive with track records of creating shareholder value.
Previously
the group took control of a financially distressed manganese producer and developed
it into a diverse mineral commodity producer to become included in the ASX 200
and was ultimately taken over by an international conglomerate for $1.25b. The
Company grew from being a small unreliable manganese producer to ultimately
supplying 10% of the world?s high grade manganese to global customers and
developed significant projects in chromite, nickel, copper, zinc and iron ore.
The
Company?s strategy for creating shareholder value is to identify projects that
comprise either commodities that are considered to have a strong future and
demand or geological characteristics that have potential and yet for various
reasons have not achieved their possibilities. The focus is on brown fields
projects close to development or production.
Driven
by the underlying fundamentals of the Chinese economy and the continued massive
urbanisation process commodities such as copper, zircon, gold and iron ore will
continue to be in strong future demand.
The
Chinese growth is augmented by the Indian economic growth particularly in the
steel industry leading to increasing demands of coking coal.
The
company?s website is www.stirlingresources.com.au
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