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Re: News Release - Wednesday, July 30, 2008
Crowflight Finalizes Metals Price Protection Requirements for
Debt Facility
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CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture
Exchange: CML) today announced that it has begun drawing down on the
$45 million Final Tranche Loan of its debt facility being used to fund
development of the Bucko Lake Nickel Project near Wabowden, Manitoba.
Of the $45 million, $15.3 million will be used to pay the $15 million
bridge facility plus interest, with the remainder to be applied to
completing construction and ramp up of the Bucko Lake Mine. This credit
facility requires a price protection strategy be put in place to limit
the risk against falling nickel prices. On July 28, 2008, the Company
entered into a forward sales contract agreements with the lender to
implement a risk management strategy to manage commodity price exposure
on nickel sales. Forward sale contracts were entered into from the
fourth quarter of 2008 to the fourth quarter of 2012 for a total of
20.5 million pounds of nickel at a price of $8.49/pound.
Details are as follows:
.. 2008 -- 0.40 million pounds Nickel
.. 2009 -- 3.88 million pounds Nickel
.. 2010 -- 5.73 million pounds Nickel
.. 2011 -- 5.54 million pounds Nickel
.. 2012 -- 4.94 million pounds Nickel
This represents approximately 21% of the current NI 43-101 compliant
proven and probable reserve base of 97.2 million pounds of contained
nickel at Bucko. Further increases in the mineable reserve base will
result in lower overall hedge percentages.
The forward sales contracts are considered derivative financial
instruments and are used for risk management purposes and not for
generating trading profits.
Crowflight Minerals - Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX-V: CML) is a Canadian junior mining
exploration and development company focused on nickel, copper and
Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and
Sudbury Basin. The Company currently owns and/or has under option
approximately 800 square kilometres of exploration and development
properties in Manitoba and Ontario.
Crowflight's priority is to bring the fully-funded Bucko Lake Nickel
Project located near Wabowden, Manitoba into production by the third
quarter of 2008.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as "plans",
"proposes", "estimates", "intends", "expects", "believes", "may",
"will". There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from
such statements. Investors are cautioned not to put undue reliance on
forward-looking information. Except as otherwise required by applicable
securities statutes or regulation, the Company expressly disclaims any
intent or obligation to update publicly forward-looking information,
whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Further information is available on the Company's website at
www.crowflight.com or contact:
Mike Hoffman
President and CEO
Crowflight Minerals
Tel: (416) 861-2964
Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803
info@crowflight.com
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Copyright (c) 2008 CROWFLIGHT MINERALS INC. (CML) All rights reserved.
For more information visit our website at http://www.crowflight.com/
or send mailto:info@crowflight.com
Message sent on Wed Jul 30, 2008 at 9:45:33 AM Pacific Time
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