International Minerals Announces Closing of $140 Million Loan Facility for
Inmaculada Mine Construction
SCOTTSDALE, AZ -- (Marketwire) -- 03/25/13 -- International Minerals
Corporation (TSX: IMZ) (SWISS: IMZ) is pleased to announce that a
$140 million term loan facility agreement with a consortium of
Peruvian banks has been signed by Minera Suyamarca S.A.C.
("Suyamarca") to provide partial financing for the capital costs
required to complete the development and construction of the
Inmaculada gold-silver project located in Peru.
Suyamarca (60% Hochschild Mining plc ("Hochschild"), 40% IMZ) owns
100% of the Inmaculada project and the Pallancata silver mine, also
in Peru. Hochschild is the operator of both properties.
The $140 million loan facility (the "Loan Facility") has a term of
seven years with no principal payable for the first two years. The
interest rate is based on the 3-month LIBOR rate plus 3.0%, with
customary closing fees and charges. Interest will be payable
quarterly during the term of the loan. The loan will be non-recourse
to both Hochschild and IMZ.
The Loan Facility combined with Hochschild's initial $100 million
contractually-required funding of the development and construction
cost, means that IMZ's remaining capital contributions to complete
its share of the $370 million Inmaculada project are estimated to be
$56-$58 million, of which $8 million was contributed by IMZ in
November, 2012. IMZ anticipates that funding of its remaining project
capital commitment of $48-$50 million might commence in the final
calendar quarter of 2013 (approximately $10-$12 million) with the
balance funded in the first half of 2014. Such funding is expected to
be provided from IMZ's working capital.
Suyamarca commenced development of the Inmaculada project in January
2012 and it is anticipated that commercial production should commence
in the second half of 2014, assuming that all permits and capital
equipment are received within the current timeline. Based on a
feasibility study announced in January 2012, the Inmaculada mine
would be a low-cost producer with an initial mine life in excess of
six years (using only the current proven and probable reserves) and
annual production (on a 100% basis) of approximately 124,000 ounces
of gold and 4.2 million
ounces of silver.
The technical disclosure in this news release has been reviewed by
IMZ's Qualified Person, VP Corporate Development, Mr. Nick Appleyard.
Hochschild Mining plc does not accept any responsibility for the
adequacy or inadequacy of the disclosure made in this news release
and any such responsibility is hereby disclaimed in all respects.
About International Minerals
In addition to its 40% ownership of Inmaculada and Pallancata, IMZ
also owns 100% of two advanced-stage gold projects in Nevada
(Goldfield and Converse) and is in the process of selling its
interests in its two gold assets in Ecuador (Rio Blanco 100% interest
and Gaby approximately 60% interest).
IMZ is listed on the Toronto Stock Exchange (since 1994) and the
Swiss Stock Exchange (since 2002).
All dollar amounts refer to United States Dollars.
Some of the statements contained in this release are "forward-looking
statements" within the meaning of Canadian securities law
requirements. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance or achievements to differ materially from
the anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking
statements in this release include statements regarding estimates of
amounts and timing of loan facilities, capital cost estimates,
reserves and resources, and anticipated production results. Factors
that could cause actual results to differ materially from anticipated
results include risks and uncertainties such as: risks of receipt and
repayment of loan facilities, estimations of capital costs,
estimations of mineral resources and reserves, variances between
mineral reserves and actual mineral production, operating and timing
risks and other risks and uncertainties detailed in the Company's
Annual Information Form for the year ended June 30, 2012, which is
available at www.sedar.com under the Company's name. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For additional information, contact:
In North America:
Vice President Corporate Relations
Tel: +1 203 883 8358
+41 44 853 00 47
Renmark Financial Communications:
Internet Site: http://www.intlminerals.com
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