MIRL.L Regulatory News (MIRL)

28 Feb 2008 07:01

Minera IRL Limited28 February 2008 news release Minera IRL Limited Signing of Working Capital Facility Agreement London: 28 February 2008. Minera IRL (the "Company" or "MIRL") has signed afacility agreement with Macquarie Bank to provide funding for the workingcapital requirements for the Company (the "New Facility"). This New Facility isan extension of the facility which was signed on 17 August 2006 and provides afurther US$3.0 million of funding, bringing the total amount of the facility toUS$5.0 million (the "Total Facility"). Under the terms of the New Facility, MIRLhas granted Macquarie Bank an option over 2,956,248 shares of the Company at aprice of approximately US$1.01 (currently 51.3p). This brings the total numberof options granted to Macquarie Bank to 4,861,048, any of which can be exercisedat any time up to and including 30 June 2009. The Total Facility is secured on the assets of the Company and is subject to anannual interest charge of 2% over LIBOR. A repayment of $2.5 million is requiredagainst the Total Facility on 31 December 2008 with the balance of $2.5 millionbeing repaid on 30 June 2009. The Company is expecting to obtain a refund of itshistoric IGV payments (Peruvian equivalent VAT), which are more than equal tothe New Facility. The debt facility does not require Minera to hedge any of itsforward gold production. Corihuarmi gold production is still on course to commence in Q1 2008. TheCompany is scheduled to produce over 35,000 ounces in 2008 at a cash operatingcost of approximately US$300 per ounce. The Company has not currently hedged anyof the anticipated Corihuarmi production and therefore is well positioned totake full advantage of the current strong gold price. MIRL expects to beginfurther exploration drilling on a number of near mine targets in the comingmonth. Four exploration teams have been mobilized to site on the Ollacheaproject in Southern Peru, as the Company steps up an aggressive explorationcampaign of mapping, channel and surface sampling in preparation for drillinglater this year. For more information contact: Minera IRL Courtney Chamberlain, Executive Chairman or +61 (0)408 888 803 Trish Kent, Manager, Corporate Relations +51 1 4181230 Arbuthnot Securities (Nomad & Broker, London) + 44 (0)20 7012 2000 Paul Vanstone Inna Vassina Bankside Consultants (Financial PR, London) + 44 (0)20 7367 8888 Simon Rothschild Louise Mason Credibolsa (Broker, Lima) + 55 13132900 Christian Chocano Synergy Asociados (Public Relations, Lima) + 511 446 2055/446 1832Magaly Villena + 511 9400 8101 Jorge Leon + 551 9837 5186 Minera IRL Limited ("MIRL") is the holding company of an emerging preciousmetals mining company focused on the Andean Cordillera of South America. MIRL isled by an experienced senior management team with extensive industry experience,particularly in operating in South America. The Group has acquired and advanceda portfolio of projects. The Company expects to commence gold production in Q12008 at its Corihuarmi mine located in Central Peru. This information is provided by RNS The company news service from the London Stock Exchange