Avanti Mining Extends Maturity Date of US$20 Million Bridge Loan
VANCOUVER, BC -- (Marketwired) -- 07/03/13 -- Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) and its wholly owned subsidiary Avanti Kitsault Mine Ltd. ("Avanti" or the "Company") announces that the US$20 million secured bridge loan with CEF Holdings Limited ("CEF") and Resource Capital Fund IV L.P. ("RCF") (collectively referred herein as Lenders) that matured on June 29th, 2013 has been extended to July 12th, 2013 This extension is to allow the Company time to conclude the advanced stage negotiations with the Lenders regarding a new loan of US$10 million together with the extension of current US$ 20 million loan. Both loans would have a new maturity date of December 31, 2014. There can be no assurance the new loan will be completed. The transaction requires TSX Venture Exchange approval and completion of definitive documentation.
CEF Holdings Limited is a Hong Kong incorporated company and is 50% owned by Cheung Kong (Holdings) Limited, a company listed on the Main Board of the Hong Kong Stock Exchange, and 50% owned by Canadian Imperial Bank of Commerce of Canada. CEF operates a natural resources fund that principally invests in mining ventures.
Resource Capital Fund IV L.P. ("RCF") is a private equity fund with mandates to make investments exclusively in the mining sector across a diversified range of hard mineral commodities and geographic regions. RCF is managed by RCF Management L.L.C. which has its principal office in Denver and additional offices in Perth, New York (Long Island) and Toronto. RCF has provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and owns approximately 37% of the Company's issued and outstanding shares.
The Company is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.
Neither the 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.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. All statements, other than statements of historical fact, included herein including, without limitation, the Company's plans to arrange a new loan,to arrange debt and equity financing to build the Kitsault project, and the development of the Kitsault project, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; results of negotiations with a potential strategic partner and other risks and uncertainties disclosed in the Company's Annual Information Form for the year ended December 31, 2011, which is available at www.sedar.com. The Company is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen
Chief Executive Officer
720-280-9450
A.J. Ali
Chief Financial Officer
303-875-7023