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Update
of Asset-Backed Commercial Paper Distribution
And New HSBC Bank Canada Loan
Agreement
February 10, 2009 - Vancouver,
British Columbia - Redcorp Ventures
Ltd. (TSX:RDV) ("Redcorp" or the "Company") and its
wholly-owned subsidiary, Redfern Resources Ltd. ("Redfern"), wish
to provide an update on their access to funds resulting from the
restructuring of Canadian Asset-Backed Commercial Paper (ABCP).
As noted in our January 26, 2009 news release, the
restructuring and distribution of ABCP that closed on January 21, 2009
effectively replaced $91.4 million of Redcorp's existing ABCP notes with
approximately $91.1 million in new notes. As previously agreed with
HSBC Bank Canada, Redcorp has now updated their required security
documentation in exchange for a new credit facility of $85 million, an
increase of $21 million in debt over the previous facility. Redcorp has now
drawn down the entire facility amount.
Further, as contemplated under the restructuring
plan, Redcorp has received a cash payment of $3.2 million related to the
net of accrued interest earned between August 2007 and August 2008 by the
former notes, less costs of the restructuring plan itself. A second
payment for accrued interest earned between
August 2008 and late-January 2009 by the former notes is expected
near-term.
The Company is currently reviewing a draft Execution Plan for the
Tulsequah Project inclusive of a revised schedule and cost estimate,
prepared by Global Project Management Corp. An update on the status
of the project will be provided on completion of the review.
Redcorp is a Vancouver based mineral exploration and development
company with active projects in British Columbia, Canada and Portugal. Further
information on Redcorp and the Tulsequah Project can be obtained on our
website at www.redcorp-ventures.com and at Redfern's website at www.redfern.bc.ca or by calling toll-free to Troy Winsor, Manager of Investor
Relations or Salina Landstad, Manager of Public Relations at the contact
numbers listed below.
ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP
VENTURES LTD.
"Terence Chandler"
Terence Chandler
President and CEO
Contacts:
Troy Winsor
Manager, Investor Relations
604-466-8934 / 1-888-225-9662
Salina Landstad
Manager, Public Relations & Corporate Communications
604-639-0135 / 1-888-669-4775 ext. 103
Certain of the statements made and information contained herein may
contain "forward-looking information" within the meaning of the
British Columbia Securities Act,
Alberta Securities Act and
Ontario Securities Act or
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934
of the United States, including, without limitation, statements concerning
the Company's plans at its Tulsequah Project and other mineral properties
and the Company's revised economic evaluation of the Tulsequah Project,
which involve known and unknown risks, uncertainties and other factors,
some of which are beyond the Company's control which may cause the actual
results, performance or achievements of the Company, or industry results
and/or consensus metal prices, to be materially different from any future
results, metal prices, performance or achievements expressed or implied by
such forward-looking information or forward-looking statements. Forward-looking
information and forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking information or
forward-looking statements, including, without limitation, material factors
and assumptions relating to, and risks and uncertainties associated with, risks relating to the availability
of financing for activities when required and on acceptable terms, risks relating to the inability to
achieve the conditions required to receive full funding contemplated by its
gold sale agreement or the MRI contingency loan, , risks related to the
ability to secure capital leasing arrangements for the purchase of mining
equipment on suitable terms, if at all, the ultimate recovery of the Company's
investment in new long-term ABCP that were issued on January 21, 2009,
risks and uncertainties relating to the interpretation of drill results and
the estimation of mineral resources and reserves, the geology, grade and
continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the Company's
expectations, metal price fluctuations, the achievement and maintenance of
planned production rates, the accuracy of component costs of capital and
operating cost estimates, current and future environmental and regulatory
requirements, favourable governmental relations, the availability of
permits and the timeliness of the permitting process, the availability of
shipping services, the availability of specialized vehicles and similar
equipment, costs of remediation and mitigation, maintenance of title to the
Company's mineral properties, industrial accidents, equipment breakdowns,
contractor's costs, remote site transportation costs, materials costs for
remediation, labour disputes, the potential for delays in exploration or
development activities, timely completion of future NI 43-101 compliant
reports, timely completion of future feasibility studies, the inherent
uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations, currency
fluctuations, continuing global demand for base metals, the fact that the
2007 Feasibility Study is based upon probable mineral reserves and not proven
mineral reserves, expectations and beliefs of management and other risks
and uncertainties, including those described under "Risk Factors"
in the Annual Information Form of the Company filed on SEDAR on March 31,
2008, and in each subsequent management's discussion and analysis. Forward-looking
information and forward-looking
statements for time periods subsequent to 2008 involve longer term
assumptions and estimates than forward-looking information and
forward-looking statements for 2008 and are consequently subject to greater
uncertainty. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
information or forward-looking statements. Accordingly, readers are advised
not to place undue reliance on forward-looking information or
forward-looking statements. When used herein, the words
"anticipate", "believe", "estimate" and
"expect" and similar expressions, as they relate to the Company
or its management, are intended to identify forward-looking information or
forward-looking statements relating to the business and affairs of the
Company. Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information or forward-looking statements, whether as a
result of new information, future events or otherwise.
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