Jaguar Mining Inc. Draws Down $5 Million Under Renvest Credit Facility
JAG - TSX/NYSE
BELO HORIZONTE, Brazil, Jan. 25, 2013 /CNW/ - Jaguar Mining Inc. ("Jaguar" or
the "Company") (JAG: TSX/NYSE) today announced that it has made an initial
draw down of $5 million on its previously announced $30 million standby credit
facility (the "Facility") with Renvest Mercantile Bancorp Inc. through its
Global Resource Fund (the "Lender"). Consistent with the terms of the
Facility, the Lender received an upfront fee and draw down fee together
comprising 570,919 shares of Jaguar's common stock and $150,000 in cash.
The Lender has advanced the initial draw down as the process to complete
registration of the remaining security under the Facility continues to be
completed. The remaining $25 million under the Facility will be available to
be drawn down by the Company once certain of the remaining security has been
Jaguar intends to use the proceeds from the initial drawdown and any
subsequent drawdowns from the Facility for working capital related to its
Turmalina, Paciência or Caeté mining projects in Brazil.
Regarding the initial draw down, Jaguar's President and CEO David Petroff
said, "We are pleased to have the financial flexibility this draw down
provides while we continue the implementation of our operational
improvements. As we execute as planned, our preference will be to rely on
internally generated funds to the greatest extent possible."
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and is developing the Gurupi
Project in Northern Brazil in the state of Maranhão. The Company is
actively exploring and developing additional mineral resources at its
approximate 220,000-hectare land base in Brazil. Additional information is
available on the Company's website at: www.jaguarmining.com.
About Renvest Mercantile Bancorp
Renvest Mercantile Bancorp, through its Cayman-based Global Resource Fund,
provides financing for companies and projects in the natural resource sector.
Loans are for terms of up to 24 months, typically in the form of a senior
secured debenture and often as a convertible debenture.
Roger Hendriksen Vice President, Investor Relations 603-410-4888
Valéria Rezende DioDato Director of Communication 011-55-31-4042-1249
SOURCE: Jaguar Mining Inc.
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CO: Jaguar Mining Inc.
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-0- Jan/25/2013 22:31 GMT
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