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BCD Resources NL [ASX: BCD] - New Funding Arrangements

BCD Resources NL (ASX: BCD) has restructured Minemakers existing $8.5 million loan and received additional loans of $6.1 million from a group of New Investors.



The restructured and new funding arrangements differ from previous arrangements in that all the funds have been received by BCD and draw downs at the lenders� discretion are not being relied upon by BCD.

Further, under the new documentation, the ability of Minemakers and the group of New Investors to act on their security is principally restricted to the occurrence of a future insolvency event in BCD.

Key points:

* Existing $8.5 million loan from Minemakers Limited (�Minemakers�) to BCD Resources NL (ASX: BCD) to remain in place on renegotiated terms.


* Additional $6.1 million (up to a maximum of $10.0 million) of loans to be provided by New Investors.


* BCD shareholder approval will be sought to convert the short-term loans from Minemakers and New Investors to 12-month convertible notes.


* Board to be restructured to represent the interests of existing BCD shareholders, Minemakers and New Investors.

The new funding arrangements will allow the Tasmania Mine to work through the current loss-making period and return to profitability when production commences from the new Western Zone.
However, to secure the Company�s future, it is essential that shareholders approve the conversion of the short-term loans into convertible notes at a general meeting of BCD shareholders anticipated to occur in late January 2011.

Please find more details in the attached announcement.

For further information, please contact:

Bill Colvin � Chief Executive Officer
BCD Resources NL
t: 61-3-9909-7401
e:
w: www.bcdresources.com.

Media enquiries:
Fortbridge
t: 61-2-9331-0655
Bill Kemmery: +61 (0) 400 122 449
e:
Luke Dean: +61 (0) 414 122 449
e: