Mawson West Completes US$30 Million Debt Financing
PERTH, AUSTRALIA and TORONTO, ONTARIO -- (Marketwire) -- 06/14/12 -- Mawson West Ltd. (TSX: MWE) ("Mawson" or the "Company") is pleased to announce that it has finalized its previously announced US$30 million debt financing facility with RMB Resources Limited ("RMB") of Sydney, Australia. The facility will be used to partly finance development of the cut-back of the Dikulushi copper-silver mine, the development of the Kapulo open pit copper mine and for related corporate purposes.
The facility is secured by a charge over the assets of the Company and its principal operating subsidiary, based in the Democratic Republic of Congo ("DRC"). Security has also been granted over the shares in the Company's DRC subsidiary. The RMB facility contains normal commercial terms including commitment and arrangement fees payable to RMB. Amounts drawn under the facility will bear interest at a rate of LIBOR plus 8% per annum. Amounts outstanding under the loan will be repaid in four equal quarterly instalments commencing June 30, 2013 and ending March 31, 2014. Production from the Dikulushi cut-back project is expected to commence in the second half of 2012 and will produce approximately 29,000 tonnes of copper and 2.8 million ounces of silver in concentrate over a period of 14 to 16 months.
Drawdowns of the facility are subject to standard project financing conditions.
About Mawson West Ltd.
Mawson West Ltd. is an Australian-based copper producer, developer and explorer listed on the Toronto Stock Exchange. Mawson's focus is on the DRC, and its major asset is its 90% ownership in tenements located in the south-eastern part of the country in the Katanga Province, comprising some 7,300 km2 of contiguous tenure. The tenements encompass the Company's two main projects, the Dikulushi copper-silver mine and the Kapulo copper exploration and development project, as well as multiple exploration targets, which are all governed by the Dikulushi Mining Convention.
Mawson's principal objectives are to expand copper production at the Dikulushi mine for a further 5 years, complete construction of the Kapulo construction project in the second half of 2013 and further explore the area governed by the Dikulushi Mining Convention to identify new targets. Mawson is also investigating other opportunities in the DRC and elsewhere which have the capacity to increase the Company's production in copper and other metals.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.