🕐04.07.13 - 16:54 Uhr
AVANTI MINING ARRANGES US$10 MILLION BRIDGE LOAN AND RESTRUCTURES EXISTING US$20
MILLION BRIDGE FINANCING
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Re: News Release - Thursday, July 04, 2013
Avanti Mining Arranges US$10 Million Bridge Loan And Restructures
Existing US$20 Million Bridge Financing
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Vancouver, British Columbia: Avanti Mining Inc.
(TSX-V: AVT) (OTC:
AVNMF.PK) and its wholly owned subsidiary Avanti Kitsault Mine Ltd.
("Avanti" or the "Company") announces that it has entered into a
binding and committed term sheet with CEF Holdings Limited ("CEF") and
Resource Capital Fund IV L.P.
("RCF") (collectively referred herein as
Lenders) that provides an additional US$10 million secured bridge loan
from RCF and extends and restructures its existing US$20 million bridge
loan.
Of the $10 million new funding, $5 million will be advanced on
closing with the remaining $5 million to be advanced in two tranches of
$2.5 million upon satisfaction of certain conditions.
The credit
committees of both Lenders have approved the term sheet and closing of
the facility, is expected on or before July12, 2013, subject to
satisfactory completion of final loan documents and other customary
conditions.
The purpose of the loan is to provide the Company with additional time
to provide debt, equity and strategic partnership financing that will
collectively provide the funds necessary for the development of the
Kitsault Mine Project in northern BC.
The loan will accrue interest at 10% and all interest and arrangement
fees are payable in cash or shares of Avanti at the choosing of each
lender.
The Company will pay the Lenders a 5% extension fee on the
US$20 million bridge in cash or shares at the election of each lender
and issue the Lenders an aggregate of 10 million three-year warrants
with an exercise price to be established at a 35% premium to the
previous 20-day VWAP of Avanti shares at the time of closing.
On the
new $10 million bridge loan facility with RCF, the Company will pay a
5% establishment fee in cash or shares at their election and issue 10
million three-year warrants with an exercise price to be established at
a 35% premium to the previous 20-day VWAP of Avanti shares at the time
of closing.
Both loans will convert into Convertible Debentures on December 31,
2013 if Avanti has not completed a Rights Offering of no less than
US$175 million with the possibility of all or a portion of this Rights
offering to be back stopped by the Lenders.
The Convertible Debentures
will be due on December 31, 2014 with a conversion price of $0.07 per
share.
The minimum price of the Rights Offering will be C$0.05 share in
accordance with the TSX-V policies.
The bridge financing will be secured by a first charge on the assets of
the Company shared pro-rata by the Lenders and replacing the security
under the existing loan facilities.
"The new financing provides Avanti with funding for the planned
activities for the balance of this year, during which we will be
working to arrange the total debt and equity financing needed to build
the Kitsault project," said A J Ali, Chief Financial Officer.
"We are very pleased to have CEF and RCF as lenders and investors in
Avanti as they are both sophisticated investors who realizes the
intrinsic value of Kitsault," said Craig J.
Nelsen, President & CEO.
"We also greatly appreciate the continued support of RCF in providing
new financing."
CEF Holdings Limited is a Hong Kong incorporated company and is 50%
owned by Cheung Kong (Holdings) Limited, a company listed on the Main
Board of the Hong Kong Stock Exchange, and 50% owned by Canadian
Imperial Bank of Commerce of Canada.
CEF operates a natural resources
fund that principally invests in mining ventures.
Resource Capital Fund IV L.P.
("RCF") is a private equity fund with
mandates to make investments exclusively in the mining sector across a
diversified range of hard mineral commodities and geographic regions.
RCF is managed by RCF Management L.L.C., which has its principal office
in Denver and additional offices in Perth, New York (Long Island) and
Toronto.
RCF has provided financing for Avanti to acquire and develop
the Kitsault deposit since 2008 and owns approximately 37% of the
Companys issued and outstanding shares.
In addition, RCF has recently
raised over $2 billion in Resource Capital Fund VI whose purpose is to
provide equity financing for construction of minor metal and other
mining projects.
The Company is focused on the development of the past producing
Kitsault molybdenum mine located north of Prince Rupert in British
Columbia.
For further information, please visit www.avantimining.com, or contact:
A.J.
Ali, Chief Financial Officer, 303-875-7023, or
Craig J.
Nelsen, Chief Executive Officer, 720-280-9450
Neither the 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.
Forward-Looking Statements: This news release contains certain
forward-looking information concerning the business of Avanti Mining
Inc.
All statements, other than statements of historical fact, included
herein including, without limitation, the Companys plans to arrange a
new loan, to arrange debt and equity financing to build the Kitsault
project, and the development of the Kitsault project, are
forward-looking statements.
These forward-looking statements are based
on the opinions of management at the date the statements are made and
are based on assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events to
differ materially from those projected in forward-looking statements.
Important factors that could cause actual results to differ materially
from the Companys expectations include fluctuations in commodity
prices and currency exchange rates; uncertainties relating to
interpretation of drill results and the geology, continuity and grade
of mineral deposits; uncertainty of estimates of capital and operating
costs, recovery rates, production estimates and estimated economic
return; the need for cooperation of government agencies and native
groups in the exploration and development of properties and the
issuance of required permits; the need to obtain additional financing
to develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs or in construction projects and uncertainty of
meeting anticipated program milestones; uncertainty as to timely
availability of permits and other governmental approvals; results of
negotiations with a potential strategic partner and other risks and
uncertainties disclosed in the Companys Annual Information Form for
the year ended December 31, 2011, which is available at www.sedar.com.
The Company is under no obligation to update forward-looking statements
if circumstances or managements opinions should change, excepting as
required by applicable securities laws.
The reader is cautioned not to
place undue reliance on forward-looking statements.
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Copyright (c) 2013 AVANTI MINING CORP.
(AVMI) All rights reserved.
For more information visit our website at http://www.avantimining.com/
or send mailto:
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