Last checked at 18 Mar 2011 07:00
Orosur Mining Inc. ("OMI" or "the Company"), today announces that it has entered into a Line of Credit Facility ("Facility") with HSBC Bank (Uruguay) S.A ("HSBC"). The Facility is for US$5.5 million to fund the purchase of equipment for Arenal Deeps.
The credit facility has been entered into by the Company's wholly owned subsidiary Loryser S.A on the following terms:
Security over new mobile equipment purchased for Arenal Deeps. Interest rate of LIBOR + 3.25%. Scheduled duration of 3 years. A guarantee from the Company of the debt payment obligations by Loryser S.A. under the Facility."We are delighted with the confidence that the team at HSBC has shown by providing this new Facility for the development of the Arenal Deeps project and are pleased to be working with a financial institution with such an extensive experience and excellent credentials in global mining finance" stated David Fowler, CEO of OMI.
"This Facility complements cash from operations to fund the Arenal Deeps project. As well as firming up our financial position, this financing minimizes dilution for our shareholders, and maintains full leverage to further increases in the gold price".
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).
Orosur Mining Inc.David Fowler, + 598 26016354CEOinfo@orosur.caorIgnacio Salazar, + 598 2 6016354CFOinfo@orosur.caorNominated Adviser & BrokerMatrix Corporate Capital LLPLouis Castro, +44 (0) 203 206 7209Tim Graham, +44 (0) 203 206 7206orPublic Relations and Investor RelationsBlythe Weigh CommunicationsTim Blythe: +44 (0) 7816 924626Ana Ribeiro: +44 (0) 7980 321505Matthew Neal: +44 (0) 7917 800011
Copyright Business Wire 2011