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Attention Business Editors
Equinox Achieves Financial Close for New US$400 Million Corporate Loan
TORONTO, March 9 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol:
"EQN") ("Equinox" or the "Company") is pleased to announce today that it has
achieved financial close of its new corporate loan facility (the "Corporate
Facility") as announced by the Company on February 1, 2010.
The Corporate Facility, totaling US$400 million, was placed with four
leading commercial banks, Standard Bank Plc, Standard Chartered Bank,
Industrial and Commercial Bank of China and BNP Paribas. The key elements of
the Corporate Facility are a 3 year US$220 million term loan with quarterly
principal and interest repayments and a 5 year US$180 million revolving
facility that the Company is allowed full repayment and/or full redraw of, up
to the facility limit, over the term.
The Corporate Facility will be used to repay certain existing senior and
subordinated project loan facilities provided to the Company's wholly owned
subsidiary Lumwana Mining Company ("LMC") in 2006 for the development of the
Company's Lumwana copper mine in Zambia.
The Corporate Facility is less restrictive than LMC's existing project
debt facilities and affords Equinox much greater control over its financial
management and business. Benefits include the removal of any 'cash sweep'
provisions and the lack of any mandatory hedging requirements, and the Company
is no longer required to maintain its undrawn US$45 million cost overrun
facility.
Equinox President and Chief Executive Officer, Craig Williams, said, "We
appreciate the important role played by the former senior and subordinated
project debt lenders without whose support the development of Lumwana would
not have occurred.
"The provision of the new Corporate Facility is recognition of the
growing strength of the Lumwana copper mine and of the Equinox group. This new
facility will provide a much more flexible basis for management of Lumwana
debt and future growth."
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Craig R. Williams - President & Chief Executive Officer
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About Equinox
Equinox Minerals Limited is an international mining company dual listed
on the Canadian (Toronto) and Australian stock exchanges.
The Company is currently focused on operating its 100% owned large scale
Lumwana Copper Mine in Zambia, one of the largest new copper mines to be
developed globally over the last few years.
Equinox acquired the Lumwana project in 1999 and following nearly 10
years of feasibility, financing and construction, commissioned the mine, plant
and infrastructure in December 2008.
Situated 220 km northwest of the Zambian Copperbelt, Lumwana is now a
major copper mine which will establish Equinox as one of the world's top 20
copper producing companies.
At initial design capacity, Lumwana will process in excess of 20 million
tonnes of ore per year, mined at an average life of mine strip ratio of 4.2:1.
Lumwana ore, which is predominantly sulphide, is treated through a large, yet
conventional plant, producing a copper concentrate for sale to local and
international offtakers.
In addition, Equinox is looking at opportunities to grow the Company
through both internal expansion (potential uranium plant to process the high
grade uranium stockpile and an expansion of the Lumwana copper plant
throughput rate) and through the international search for mergers and
acquisitions.
For information on Equinox and technical details on the Lumwana Project
please refer to the company website at www.equinoxminerals.com
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Cautionary Note regarding Forward-Looking Statements
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This press release contains certain information which may constitute
"forward-looking statements" and/or "forward-looking information" within the
meaning of securities laws. Forward-looking information can often, but not
always, be identified by the use of words such as "plans", "expects", "is
expected", "is expecting", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes", or variations (including negative
variations) of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "might", or "will" be taken, occur or be
achieved. Forward-looking information may relate to management's future
outlook and anticipated events or results and may include statements or
information regarding its future plans or prospects of the Company. Without
limitation, statements that the Company anticipates closing the US$400 million
Corporate Facility by March 2010; all statements relating to the terms and
conditions of the Corporate Facility and that Equinox will incur break fees in
the amount of US$15 million to US$20 million, are forward-looking statements.
The purpose of forward-looking information is to provide the reader with
information about management's expectations and plans for 2010.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, anticipated financial or operating performances
of Equinox, its subsidiaries and their respective projects; future prices of
copper and uranium; the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; the timing and amount of estimated
future production; estimated costs of future production; the sale of future
production and the performance of off-takers; capital, operating and
exploration expenditures; costs and timing of the development of the Lumwana
Project; the costs of Equinox's hedging policy; costs and timing of future
exploration, requirements for additional capital; government regulation of
exploration, development and mining operations; environmental risks;
reclamation and rehabilitation expenses; title disputes or claims; and
limitations of insurance coverage. Without limitation, in stating that the
Company anticipates closing the US$400 million Corporate Facility by March
2010, including any statements related to the terms and conditions of the
Corporate Facility and in stating that the Company will incur break fees in
the amount of US$15 million to US$20 million, the Company has assumed that it
will satisfy all of the conditions precedent and obtain all necessary
approvals to close the Corporate Facility in March 2010.
Readers are cautioned that forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Equinox and/or its subsidiaries to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking information. These factors include
risks inherent in the exploration and development of mineral deposits;
operational risks inherent in the conduct of mining activities; risks relating
to changes in copper and uranium prices; changes in demand and supply of
copper and uranium; uncertainties inherent in the estimation of mineral
reserves and resources; risks inherent in the estimation of future production
and future production costs; the estimation of cash costs of copper
production; risks related to the Company's indebtedness including risks
related to meeting its financial covenants; financing risks; risks related to
interest rates, exchange rates; inflation or deflation; changes in the value
of the U.S. dollar to foreign currencies; political and economic conditions of
major copper-producing countries; risks inherent in securing off-take
arrangements and terms and/or enforcing such terms; insurance, government
regulation, licences and permits and environmental risks; risks inherent in
the estimation of reclamation costs; risks related to the Company's hedging
activities; litigation; competition and reliance on key personnel. These risks
are discussed in the section entitled "Risk Factors" in the Company's Annual
Information Form dated March 27, 2009. Although Equinox has attempted to
identify statements containing important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking information, there may be other factors that cause actions,
events or results to differ from those anticipated, estimated or intended.
Forward-looking information contained herein are made as of the date of this
document based on the opinions and estimates of management on the date
statements containing such forward-looking information are made, and Equinox
disclaims any obligation to update any forward-looking information, whether as
a result of new information, estimates or opinions, future events or results
or otherwise. There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers
should not place undue reliance on forward looking information.
Scientific and technical information contained in this press release has
been prepared under the supervision of Robert Rigo, BEng., FAusIMM, MIEAust,
Vice President, Project Development of Equinox who is a "Qualified Person" in
accordance with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects. Readers are cautioned not to rely solely on the summary of
information contained in this release, but should read the Amended Technical
Report which is posted on Equinox's website at www.equinoxminerals.com and
filed on SEDAR at www.sedar.com and any future amendments to such report.
Readers are also directed to the cautionary notices and disclaimers contained
therein.
Readers are cautioned not to rely solely on the summary of such
information contained in this release, but should also read the final
prospectus dated April 16, 2009 and the documents incorporated by reference
therein, particularly, the Annual Information Form dated March 27, 2009, all
of which are filed on SEDAR (www.sedar.com). Readers are also directed to the
cautionary notices and disclaimers contained herein.
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/For further information: Craig R. Williams (President and Chief
Executive Officer), Michael Klessens (Vice President - Finance and Chief
Financial Officer), Phone: +61 (0) 8 9322 3318, Email:
equinox@equinoxminerals.com or Kevin van Niekerk (V.P. Investor Relations),
Phone: (416) 865-3393, Email: kevin.van.niekerk@equinoxminerals.com or David
Griffiths (Gryphon Management Australia), Phone +61 (0) 419 912 496, Email:
david.griffiths@gryphon.net.au/
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