Mirabela Nickel Limited - Company Update

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, 
including Bradesco.

SOURCE  Mirabela Nickel Ltd. 
Mirabela Nickel Limited Telephone: +61 8 9324 1177 
To view this news release in HTML formatting, please use the following URL: 
CO: Mirabela Nickel Ltd.
-0- Nov/07/2013 09:09 GMT
Press spacebar to pause and continue. Press esc to stop.