May 9, 2012, Vancouver, BC – Curis Resources Ltd. (TSX: CUV)
(“Curis” or the “Company”) is pleased to announce that it has executed
definitive legal agreements with RK Mine Finance Trust I (“Red Kite”) for a
senior secured bridge loan facility and copper cathode sale and off-take
agreement.
Under the terms of the bridge loan agreement, Red Kite will provide a
US$40million loan with interest payable at LIBOR plus 8% maturing two years from
the date of closing. The loan is repayable without penalty or premium at any
time prior to maturity, with Curis having a one-time option to extend the
maturity date by one year under specified terms and conditions (the “Extension
Option”). Interest on the loan is payable at maturity and certain fees will be
payable from the net proceeds of the loan.
The parties had previously contemplated that Red Kite would have the right to
convert the outstanding amount of the loan into common shares of Curis at the
time prior to maturity under specified terms, but that conversion right has been
removed from the final definitive terms agreed between the parties.
Under the terms of the signed off-take agreement, Curis will sell to Red
Kite, on a take-or-pay basis, 25%, or if the Extension Option is exercised, 30%
of the Florence Copper project’s copper cathode production for the life of the
project. The off-take agreement has been structured such that copper cathode
produced at Florence is to be purchased by Red Kite at a price consistent with
London Metal Exchange (LME) market price quotations, subject to certain
discounts.
“The finalization of this agreement with Red Kite is a key milestone
toward delivering on the development of this world class next generation copper
project with no dilution to shareholders” commented Curis President and CEO
Michael McPhie. “The agreement allows us to focus on the company’s key
near-term objectives of completing project permitting, engineering and the start
of construction of the Phase 1 Production Test facility.”
“A significant percentage of the US$40million will be invested locally in
Arizona and will provide the opportunity for new jobs, and further reinforces
Florence Copper's positive impact on the local economy.”...
No comments:
Post a Comment