PERTH, Australia, Nov. 7, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or
the Company) (ASX: MBN) wishes to provide the following update.
In the Company Update announcement to the ASX dated 4 November 2013, Mirabela
advised that it had received notification from one of its two customers,
Votorantim Metais Niquel S.A. (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 Concentrate sale agreement (Sales
Mirabela has the following 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); and
-- US$55 million master funding and lease agreement with
Caterpillar Financial Services Corporation. Year to date the
outstanding balance is US$11.23 million.
Mirabela has taken preliminary legal advice from its legal 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.
As outlined in the Company Update announcement to the ASX on 31 October 2013,
Mirabela is currently discussing standstill arrangements with its financiers,
SOURCE Mirabela Nickel Ltd.
Mirabela Nickel Limited Telephone: +61 8 9324 1177
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-0- Nov/07/2013 09:09 GMT
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