PERTH, AUSTRALIA, Oct. 1, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or
the Company) (ASX: MBN, TSX: MNB) wishes to provide the following update.
In the Company and Operational Update announcement to the ASX dated 26
September 2013, Mirabela advised that it had received notification from one of
its two customers, Votorantim Metais Niquel S.A. (Votorantim), that Votorantim
intends to close their smelting facilities from November 2013 due to the
adverse nickel market conditions. Votorantim considers that the concentrate
sales agreement with Mirabela will terminate at the end of November 2013.
Mirabela has two significant debt structures currently in place:
-- Mirabela's subsidiary, Mirabela Mineração do Brasil Ltda, has a
US$50 million facility with Banco Bradesco S.A., which is
secured by the Company's contract with Votorantim (Bradesco
-- Mirabela has on issue approximately US$395 million of 8.75%
senior unsecured notes due 2018 (Notes)
Mirabela has taken preliminary legal advice from its Australian counsel and is
of the view that the notice received from Votorantim may constitute an event
of default under the Bradesco Facility. If an event of default is triggered
under the Bradesco Facility, and Bradesco chooses to enforce its rights by
accelerating repayment, a cross default under the Notes may also be triggered.
As required under the Bradesco Facility, Mirabela has provided notice of the
potential event of default to Bradesco.
Given that the Bradesco Facility and the Notes are both governed by New York
law, the Company is seeking confirmatory legal advice from its US counsel in
relation to these matters.
SOURCE Mirabela Nickel Ltd.
CONTACT DETAILS John Stamopoulos General Manager Commercial Telephone: +61 406
424 916 firstname.lastname@example.org
Chris Els Chief Financial Officer & Company Secretary Telephone: +61 439 930
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CO: Mirabela Nickel Ltd.
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