Mercator Minerals Announces Letter of Intent to Increase Financial
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/22/12 -- Mercator
Minerals Ltd. (TSX:ML) ("Mercator" or "Company") is pleased to
announce today that its wholly-owned subsidiary, Mercator Minerals
(Barbados) Ltd ("MMBL"), has a non-binding letter of intent with
Silver Wheaton (Caymans) Ltd. ("Silver Wheaton Caymans"), a
subsidiary of Silver Wheaton Corp., to amend the silver purchase
"Consistent with our recently announced refinancing, the proposed
amendment of the SPA would enhance our immediate financial
flexibility and our ability to support low-risk, fast payback growth
projects at Mineral Park," commented D. Bruce McLeod, Mercator's
President & CEO. "We value our partnership with Silver Wheaton and
appreciate their continued support in growing the Company."
MMBL has a non-binding letter of intent with Silver Wheaton Caymans
to amend the SPA. The amendment, once executed, will provide MMBL the
right to exercise at any time until August 31, 2014 to defer delivery
of up to 50% of required silver deliveries for one year. All deferred
silver will be delivered in equal installments over 18 months after
the one year deferral period. MMBL will compensate Silver Wheaton
Caymans for any shortfall arising from a decrease in the silver spot
price at the time of the original delivery date until the date of
actual delivery, including a 12% annualized interest rate. The
amendment will also grant Silver Wheaton Caymans a right of first
refusal on any future precious metal streams relating to the El
The amendment is subject to any necessary approvals, the negotiation
and execution of definitive binding documentation, the amendments to
the Mineral Park credit facility and El Pilar pre-construction credit
facility being refinanced as previously announced, and certain
additional security arrangements being put in place.
About Mercator Minerals Ltd.
Mercator Minerals Ltd., a TSX listed Canadian mining company with the
potential to have one of the fastest growing base metal profiles in
its peer group, is a copper, molybdenum and silver producer with a
diversified portfolio of high quality assets in the USA and Mexico.
Mercator provides investors exposure to current copper, molybdenum
and silver production from the large tonnage long life Mineral Park
Mine in Arizona, as well as mid-term exposure to potential copper
production from its El Pilar deposit in the State of Sonora in
northern Mexico and longer term exposure of molybdenum and copper
through the potential development of the El Creston deposit also in
the State of Sonora in northern Mexico.
For further information please visit www.mercatorminerals.com.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
D. Bruce McLeod, P.Eng., President and CEO
This press release contains certain forward-looking information
within the meaning of Canadian securities legislation and
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. This information
and these statements, referred to herein as "forward-looking
statements", are not historical facts, are made as of the date of
this press release and include without limitation, statements
regarding discussions of the Company's business strategy, future
plans, projections, objectives, estimates and forecasts and
statements as to management's expectations with respect to, among
other things, financing plans, the completion of the transactions,
the use of proceeds from the deferral, the ability to obtain
necessary approvals, mine operations, projected mine life, and
discussions of future plans, projections and objectives. These
forward-looking statements involve numerous risks and uncertainties
and actual results may vary. Important factors that may cause actual
results to vary include without limitation, certain transactions,
certain approvals, unavailability of financing, delays in the receipt
of government approvals, and changes in general economic conditions
or conditions in the financial markets. In making the forward-looking
statements in this press release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained copper and
molybdenum demand and prices; and (2) any financing needed will be
available on reasonable terms. The risks and assumptions are
described in more detail in the Company's Annual Information Form,
audited financial statements and MD&A for the year ended December 31,
2011 on SEDAR (www.sedar.com). The Company does not assume the
obligation to revise or update these forward-looking statements after
the date of this news release or to revise them to reflect the
occurrence of future unanticipated events, except as may be required
under applicable securities laws.
Mercator Minerals Ltd.
D. Bruce McLeod, P.Eng.
President & CEO
Mercator Minerals Ltd.
David Jan, CA
Head of Investor Relations & Communications
Press spacebar to pause and continue. Press esc to stop.