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TORONTO, ONTARIO--(Marketwire - Feb. 27, 2013) -
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Silvermet Inc. ("Silvermet" or the "Company") (News - Market indicators) is pleased to announce that the European Bank for Reconstruction and Development ("EBRD"), has approved a project finance loan of US$49 million, which amount is equal to 70% of the estimated US$70 million cost for the new Adana zinc plant. Closing is subject to completion of documentation and is expected in early April. The project finance facility has a term of 9.5 years, with no repayments during the first twenty-four (24) month construction period.
Through its joint venture with Befesa Zinc, Silvermet will be constructing its first new Waelz kiln in Adana, Turkey. Permitting approval is expected over the next month and construction should begin in April. The Adana plant will have capacity to process 110,000 tonnes of electric arc furnace dust per annum which will result in the production of 40,000 tonnes of Waelz oxide per annum containing 60 million pounds of zinc, bringing the total zinc production of the joint venture to approximately 90 million pounds per annum. The Adana plant is expected to be commissioned by early 2015.
The joint venture partners will be contributing the remaining US$21 million required for the Adana plant (Silvermet's 49% share is US$10.3 million). Silvermet is presently evaluating various funding alternatives including using present cash on hand for part of this funding.
The Befesa Silvermet joint venture is also progressing with the permitting of a second new plant in Izmir, Turkey and construction is expected to begin on that plant later this year.
Stephen G. Roman, President and CEO commented, "The senior project financing facility announced today marks a significant corporate development milestone for Silvermet. Our new increased processing capacity coincides with announced zinc mine closures and an emerging consensus among zinc industry analysts forecasting a tightening of zinc concentrate supply in the coming years."
Silvermet's principal business activity is the recycling of electric arc furnace dust ("EAFD"), a waste product created by steel mills, through a Waelz kiln to produce a zinc concentrate that is sold to smelters throughout the world. The Company owns a 49% interest in the operating company Befesa Silvermet Turkey ("BST"), which operates a Waelz kiln facility located in Iskenderun, Turkey.
Additional information can be accessed at the Company's website www.silvermet.ca or through the Company's public filings at www.sedar.com.
Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.