Lundin Mining Completes $600 Million Debt Facilities for Eagle Project Funding
TORONTO, ONTARIO--(Marketwired - Oct. 7, 2013) - Lundin Mining Corporation (LUN.TO)(OMX:LUMI) ("Lundin Mining" or the "Company") today announced that it has completed the amendments to the Company's credit agreement that were previously announced on September 16, 2013.
The amended credit agreement provides for a term loan of $250 million and an extension of the maturity of the $350 million revolving credit facility to October 2017. This arrangement is expected to provide funding in excess of that which is required to complete the construction of the Eagle Project located in the Upper Peninsula of Michigan, near the City of Marquette.
Scotiabank continued as the Sole Lead Arranger, Sole Bookrunner and Administrative Agent in the syndicate of lenders, along with ING Bank NV as the Syndication Agent, Bank of Montreal as the Documentation Agent, and Export Development Canada, Skandinaviska Enskilda Banken AB and Bank of America Merrill Lynch as lenders. Société Générale joined the syndicate as a new lender.
Ms. Marie Inkster, Senior Vice President and Chief Financial Officer, commented, "We are fortunate to have a very committed group of core lenders. We have received excellent support from the syndicate for the funding to complete the Eagle Project."
The Company currently has $200 million drawn on the Revolving Facility which was used to pay a portion of the $315 million acquisition cost of the Eagle Project on July 17, 2013. Initial production from the Eagle Mine is expected to commence in Q4 2014.
About Lundin Mining
Lundin Mining is a diversified base metals mining company with operations and projects in Portugal, Sweden, Spain and the U.S.A. producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, CEO
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of Mineral Resources and Reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
