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Asset-Backed
Commercial Paper Distribution Update
Tulsequah Chief Mine Project Development Update
January 26, 2009 - Vancouver, British Columbia - Redcorp Ventures Ltd. (TSX:RDV) ("Redcorp" or the "Company") and its
wholly-owned subsidiary, Redfern Resources Ltd. ("Redfern"), are pleased to provide an update on
their access to funds resulting from the restructuring of Canadian
Asset-Backed Commercial Paper (ABCP) and an update of permit and
construction activities at the Tulsequah Project.
ABCP Restructuring and HSBC Bank Credit Facility
Redcorp
received notice from the Pan-Canadian Committee of the closing on January
21, 2009 of the restructuring and distribution plan for the new notes to
replace the Company's existing $91.4 million investment in ABCP assets
which did not mature in August 2007 as originally intended. An
advisory letter from the Company's broker-dealer, HSBC Bank Canada, is
expected shortly, indicating the type and quantum of new notes, and
back-interest receivable related to the former notes. Such new notes will
replace the prior notes as security for an updated loan agreement with HSBC
Bank Canada. Under the updated agreement, the new notes will allow the
Company to access a credit facility of $85 million, an increase of $21
million over the existing facility.
According to the Pan-Canadian Committee, noteholders
will receive accrued interest payments in two tranches. The first tranche,
which is anticipated shortly, will represent interest accrued on the
underlying assets from August 2007 to August 31, 2008 less the majority of
the restructuring costs. A second tranche will be issued for accrued
interest from August 31, 2008 to January 21, 2009, less any residual
restructuring fees. The date for issuance of the second tranche is not
yet known, but is expected near-term.
Permitting and Construction Activities
As announced on December 22, 2008, construction activities at the
mine site were suspended on December 17 for the holiday break. This
suspension has been extended through January to allow for the acquisition
of key permits, advance of project execution planning, and detailed
engineering and production of final construction drawings. This
suspension was also necessitated due to uncertainties on the timing of the
ABCP restructuring. Clarity on the ABCP restructuring is now in hand
and progress is being made in the remaining areas as detailed below:
click here to read the entire
news release
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