Liberty Mines arranges extra credit for McWatters
2010-02-08 08:28 ET - News Release
Dr. Gary Nash reports
LIBERTY ARRANGES ADDITIONAL CREDIT FACILITY WITH JILIN JIEN NICKEL
Liberty Mines Inc. has arranged an additional $4.5-million credit facility with Jilin Jien Nickel Industry Co., Ltd. (JJNICL) of China. The funds are to provide working capital and to complete additional development of the McWatters and Redstone nickel mines near Timmins, Ont. The principal bears interest at 8 per cent on the unpaid balance and will be payable in full with interest by Oct. 17, 2010, which date will be extended if the price of nickel averages less than the current $8 (U.S.) per pound. Liberty may, at its option, prepay at any time all or any portion of the principal amount outstanding or any interest owing without notice or penalty provided that any such prepayment shall be applied firstly to interest and then to the payment of principal.
JJNICL has also provided $2.1-million of bridge loans to match receivables in the amount of 25 per cent of the value of monthly provisional payments due from Xstrata Nickel for concentrate shipments. Those holdbacks are due 3.5 months after the delivery month of the concentrate; the first of which since the October, 2009, shipments commenced, is to be received on Feb. 15, 2010. The total amount of short-term principal outstanding to JJNICL is approximately $11.2-million which is payable in tranches from March, 2010, to October, 2010, with some flexibility, as stated above, due to uncertainty of the price of nickel over the next several months.
