TORONTO, ONTARIO, Jul 06 (MARKET WIRE) --
Lundin Mining Corporation ("Lundin Mining") (TSX: LUN)(OMX: LUMI) today
announced that it has executed a third amendment to its credit agreement.
The amendment will be effective July 7, 2009 and will result in a
restructured facility with the following terms:
- Three year, fully revolving credit of US$225 million;
- Interest at LIBOR plus 4.5% until March 2010 and from April 2010 at
LIBOR plus 3.5% to 4.5% depending upon the leverage ratio of the Company;
and
- Financial covenants customarily required for a revolving-term facility
including minimum tangible net worth, interest coverage ratio and
leverage ratio.
The Third Amending Agreement removes the prohibitions on acquisitions and
disposals that were imposed by the Second Amending Agreement and Waiver;
it instead establishes that security will be extended to material assets
acquired, and specifies reductions in the facility if the Company's
principal mining assets are disposed of in whole or in part.
In co-operation with Scotia Capital, the Lead Arranger, the Company has
arranged to reduce the number of lenders in the syndicate from ten to
six. Five members of the original syndicate, The Bank of Nova Scotia,
Bank of Montreal, West LB AG, ING Bank N.V. and Skandinaviska Enskilda
Banken AB (SEB) will be joined by Export Development Canada (EDC) to
comprise the new group of six lenders.
Lundin Mining currently has US$210.2 million drawn on the facility and
US$150.4 million cash on hand.
Phil Wright, President and CEO, commented, "We are pleased with the
outcome of this restructuring. The size and terms of the facility give us
the flexibility we have been seeking and it meets all of our reasonably
foreseeable requirements over the next three years.
"The covenants were tested extensively using the Company's financial
model, to ensure the Company could remain in compliance during a
prolonged period of low metal prices.
"The syndicate comprises an appropriate number of banks, all of which we
are very comfortable working with and we appreciate the support that has
been given. We are also pleased to welcome EDC to the syndicate.
"The conclusion of this restructuring allows us to focus on the continued
successful running of operations, participation in the expansion of Tenke
and on further strategic developments," Mr. Wright said.
About Lundin Mining
Lundin Mining Corporation ("Lundin", "Lundin Mining" or the "Company") is
a diversified base metals mining company with operations in Portugal,
Spain, and Sweden, producing copper, nickel, lead and zinc. In addition,
Lundin Mining holds a development project pipeline which includes
expansion projects at its Zinkgruvan and Neves-Corvo mines along with its
equity stake in the world class Tenke Fungurume copper/cobalt project in
the Democratic Republic of Congo. The Company also holds an extensive
exploration portfolio and interests in international mining and
exploration ventures.
Forward Looking Statements
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the Ontario
Securities Act or "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 of the United States.
Forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from
those reflected in the forward-looking statements, including, without
limitation, risks and uncertainties relating to foreign currency
fluctuations; risks inherent in mining including environmental hazards,
industrial accidents, unusual or unexpected geological formations, ground
control problems and flooding; risks associated with the estimation of
mineral resources and reserves and the geology, grade and continuity of
mineral deposits; the possibility that future exploration, development or
mining results will not be consistent with the Company's expectations;
the potential for and effects of labour disputes or other unanticipated
difficulties with or shortages of labour or interruptions in production;
actual ore mined varying from estimates of grade, tonnage, dilution and
metallurgical and other characteristics; the inherent uncertainty of
production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations; uncertain political and economic
environments; changes in laws or policies, foreign taxation, delays or
the inability to obtain necessary governmental permits; and other risks
and uncertainties, including those described under Risk Factors Relating
to the Company's Business in the Company's Annual Information Form and in
each management discussion and analysis. Forward-looking information is
in addition based on various assumptions including, without limitation,
the expectations and beliefs of management, the assumed long term price
of copper, nickel, lead and zinc; that the Company can access financing,
appropriate equipment and sufficient labour and that the political
environment where the Company operates will continue to support the
development and operation of mining projects. Should one or more of these
risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described
in forward-looking statements. Accordingly, readers are advised not to
place undue reliance on forward-looking statements.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
Lundin Mining Corporation
Josh Crumb
Investor Relations Toronto
+1-416-342-5565
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
www.lundinmining.com
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