PERTH, Australia, Nov. 4, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or
the Company) (ASX: MBN) wishes to provide the following update.
Mirabela previously announced that one of its two customers, Votorantim Metais
Niquel S.A. (Votorantim), had provided notice to Mirabela advising that its
concentrate sales agreement with Mirabela (Sales Agreement) would terminate at
the end of November 2013. Mirabela subsequently announced that following the
receipt of legal advice and discussions with Votorantim, Votorantim confirmed
to the Company in writing that: its purported termination of the Sales
Agreement was invalid; the Sales Agreement remained on foot; it was committed
to a minimum level of concentrate deliveries for the months of October and
November; and that it intended to comply with its obligations under the Sales
Agreement until the end of 2014.
Mirabela has now received notice from Votorantim that the main transformer at
its Fortaleza smelter has malfunctioned and as such the electric furnace is
not able to operate. Votorantim has claimed that these circumstances are an
event of force majeure and that as a result it is not currently obligated to
purchase nickel concentrate pursuant to the Sales Agreement.
The Company is taking legal advice on its position regarding a claimed force
majeure and in particular the status of a force majeure when Votorantim closes
their smelter at the end of November 2013 and cease trying to remedy the cause
of the claimed force majeure.
Mirabela is also currently assessing the impact of this situation on its short
term cash flow position and the status of the Company's US$50 million facility
with Banco Bradesco S.A., which is secured by the Sales Agreement.
SOURCE Mirabela Nickel Ltd.
CONTACT DETAILS Mirabela Nickel Limited Telephone: +61 8 9324 1177
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-0- Nov/04/2013 11:11 GMT
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