North American Tungsten Corporation Announces Debt Extension and Debenture Issuance
31 Dezember 2013 - 11:56PM
Marketwired
North American Tungsten Corporation Announces Debt Extension and
Debenture Issuance
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 31, 2013) -
North American Tungsten Corporation Ltd. (TSX-VENTURE:NTC) (the
"Company") announces today that it has extended its $12,000,000
operating loan facility and its $12,000,000 working capital loan
facility (the "Working Capital Loan") with HSBC Bank Canada
("HSBC") to June 30, 2014. A US$12,000,000 Letter of Credit ("L/C")
backing the Working Capital Loan is sponsored by two directors of
the Company (the "Sponsors") and has been extended for the same
period. The Sponsors and HSBC have similarly extended a Put
Agreement that allows HSBC to exchange the outstanding balance
under the Loan with the Sponsors for up to the US$12,000,000 L/C.
In exchange for extending the Put Agreement and the L/C, the
Company has agreed to compensate the two Sponsors by paying a fee
of 2.25% of the amount of the L/C each quarter that the L/C remains
outstanding.
The Company also announces the re-capitalization of
US$10,000,000 of indebtedness owing by the Company into an
aggregate principal amount of US$10,000,000 of debentures (the
"Debentures"). The Debentures have a two year term and bear
interest at a rate of 11% per annum. Subject to receipt of
regulatory approval, the principal amount of the Debentures will be
convertible into common shares of the Company (the "Conversion
Right") at a price equal to the lower of $0.12 and the volume
weighted average closing price of the Company's common shares for
the ten trading days prior to the date on which shareholder
approval for the Conversion Right is obtained. The Debentures apply
a fixed exchange rate of US$1 = CDN$0.94. An aggregate of
US$8,550,000 of the Debentures were subscribed for by insiders of
the Company. Accordingly, the Company anticipates that shareholder
approval will be required as part of the necessary regulatory
approvals. The Company plans on holding a shareholder meeting in
February 2014. In the event regulatory approval is not obtained by
March 31, 2014 the interest rate for the Debentures will increase
to 18% per annum until such time as regulatory approval for the
Conversion Right is obtained. The Debentures are secured by a
general security interest in the Company's assets that is
subordinated to the Company's senior indebtedness.
The Company obtained a fairness opinion from Ross Glanville
& Associates Ltd. and Bruce McKnight Minerals Advisor Services
that the terms of the Debentures are fair to holders of securities
of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Kurt E. Heikkila, Chairman and Interim President & CEO
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company
engaged primarily in the operation, development, and acquisition of
tungsten and other related mineral properties in Canada. The
Company's 100% owned CanTung mine and MacTung development project
make it one of the few tungsten producers with a strategic asset in
the western world. MacTung is one of the world's largest known
undeveloped high grade tungsten-skarn deposits.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term as defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note: The Company relies upon litigation
protection for "forward-looking" statements.
Safe Harbour Statement under the United States Private
Securities Litigation Reform Act of 1995 and similar Canadian
legislation: Except for the statements of historical fact
contained herein, the information presented contains
"Forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and similar Canadian
legislation. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects,"
"budget," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," "believes," or variation of such words and phrases
that refer to certain actions, events or results to be taken, and
other factors which may cause the actual results, performance or
achievements of North American Tungsten Corporation Ltd. to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the actual results
of reclamation activities, the estimation or realization of mineral
reserves and resources, the timing and amount of estimated future
production, costs of production, capital expenditures, future
prices of commodities, possible variations in ore grade or recovery
rates, efficacy and efficiency of milling process, failure of
plant, equipment or processes to operate as anticipated, accidents,
labour disputes and other risks in the mining industry. Although
North American Tungsten Corporation Ltd. has attempted to identify
important factors that could cause actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained
herein and in North American Tungsten Corporation Ltd.'s other
filing incorporated by reference.
North American Tungsten CorporationInvestor
Contact+1.604.684.5300+1.604.684.2992info@natungsten.comwww.natungsten.com
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