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Orosur
Mining Inc. (“OMI” or “the Company”),
today announces that it has entered into a Line of Credit Facility
(“Facility”) with HSBC Bank (Uruguay) S.A (“HSBC”).
The Facility is for US$5.5 million to fund the purchase of equipment for Arenal Deeps.
The credit facility has been entered into by the Company’s
wholly owned subsidiary Loryser S.A on the
following terms:
- Security
over new mobile equipment purchased for Arenal
Deeps.
- Interest
rate of LIBOR + 3.25%.
- Scheduled
duration of 3 years.
- A
guarantee from the Company of the debt payment obligations by Loryser S.A. under the Facility.
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“We are delighted with the confidence that the team at HSBC has
shown by providing this new Facility for the development of the Arenal Deeps project and are pleased to be working with a
financial institution with such an extensive experience and excellent
credentials in global mining finance” stated David Fowler, CEO of OMI.
“This Facility complements cash from operations to fund the Arenal Deeps project. As well as firming up our financial
position, this financing minimizes dilution for our shareholders, and
maintains full leverage to further increases in the gold price”.
Forward Looking Statements
All statements, other than statements of historical fact, contained or
incorporated by reference in this news release, including any information as
to the future financial or operating performance of the Company, constitute
"forward-looking statements" within the meaning of certain securities
laws, including the "safe harbour"
provisions of the Securities Act (Ontario) and the United States Private
Securities Litigation Reform Act of 1995 and are based on expectations
estimates and projections as of the date of this news release. There can be
no assurance that such statements will prove to be accurate, such statements
are subject to significant risks and uncertainties, and actual results and
future events could differ materially from those anticipated in such
statements. Forward-looking statements include, without limitation success of
exploration activities; permitting time lines; the failure of plant;
equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital
title disputes or claims and limitations on insurance coverage. The Company
disclaims any intention or obligation to update or revise any forward looking
statements whether as a result of new information, future events and such
forward-looking statements, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur
Mining Inc. is a fully integrated gold producer and exploration company
focused on identifying and developing gold projects in Latin America. The
Company operates the only producing gold mine in Uruguay (San Gregorio), and
has assembled an exploration portfolio of high quality assets in Uruguay and
Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London
(AIM: OMI).
Contact:
Orosur Mining Inc
David Fowler, + 598 26016354
CEO
info@orosur.ca
or
Ignacio Salazar, + 598 2 6016354
CFO
info@orosur.ca
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