Proactive investors

Additional information

Additional	Information
Market:	TSX, ASX
Sector:	General Mining
Epic:	TSX:MBN
News:	Latest news
Web Site:	Mirabela Nickel
Other Articles:	20-11-200903-11-200910-10-2009

Mirabela Nickel secures financing for Santa Rita

Mirabela Nickel (TSX: MNB,ASX: MBN) has advised that it has signed a commitment letter for a US$150m senior secured term loan facility for the Santa Rita project, arranged and underwritten by Barclays, Credit Suisse, West LB and Caterpillar Financial Services. This banking commitment is credit approved by all lenders. Credit Suisse, Barclays, West LB have committed US$40m each and Caterpillar has committed US$30m.

The funding will be provided by way of a 6.5 year term loan, with an approximately 2 year grace period during which interest will accrue to principal; thereafter interest will be paid quarterly with semi‐annual principal payments. The interest rate will consist of the lenders weighted average cost of funds or LIBOR, plus a credit margin.

The underwriter’s commitments to fund will not be subject to any further syndication prior to funding, but are conditional on Mirabela raising US$133m in additional equity (net of commissions), the signing of definitive loan documentation, and other conditions usual for such financings. The loan documentation will be based on amendment and restatement of the credit facility agreement signed by Mirabela, Credit Suisse and Barclays in September 2008 and is substantially agreed. Satisfaction of conditions precedent to this loan agreement is also well advanced.

The commitment letter allows another lender to accede to its terms, up until March 20, for up to an additional US$40m, bringing the total senior secured term loan commitments to US$190m. Mirabela has been working with a prospective lender on this additional US$40m participation. This lender is currently in the final stages of seeking credit approval and a response is expected shortly. If this lender accedes to the commitment letter the underwriter’s requirement for additional equity will decrease to US$95m (after commissions).

The company said, "Mirabela is pleased to have secured these banking commitments in an exceptionally difficult market for senior debt lending and base metals projects, reflecting the low cost, long life qualities of the Santa Rita project. This senior loan funding, combined with the required equity funding, will meet the Company’s total funding requirements to complete construction of the Santa Rita project and bring it into production."

Purchase of Caterpillar Mining Fleet

Mirabela is also pleased to announce that it has signed a fleet financing commitment letter with Caterpillar Financial SARL of Zurich, Switzerland, under which Cat Financial has agreed to arrange financing for 90% of the cost of the mining fleet. The financing will be available upon the delivery of the equipment starting in April 2009. The commitment is subject to satisfaction of various conditions precedent.

Mr. Nick Poll, Managing Director of Mirabela Nickel, said: “We are pleased to reach this important milestone in the Santa Rita Project and to join forces with Marcosa S.A. and Sotreq S.A., strong and well‐established Caterpillar dealerships in Brazil, to support our operations of the Santa Rita Project. We also appreciate the confidence that Cat Financial has in our Project and our people in funding our mining equipment fleet. This agreement ensures that Mirabela will have the necessary equipment to fast‐track the development of the Project."

Register here to be notified of future Mirabela Nickel articles.