TSX: JAG
TORONTO, Dec. 23, 2013 /CNW/ - Jaguar Mining Inc.
(Jaguar or the Company) announced today that, further
to its announcement of earlier today, the Company has obtained an
Initial Order from the Ontario Superior Court of Justice
(Commercial List) under the Companies' Creditors Arrangement
Act (CCAA).
The Initial Order authorizes Jaguar to commence
a Court-supervised refinancing and restructuring of its capital
structure and related obligations through the conversion of its
unsecured debt into equity and a share offering (the
Recapitalization). The Initial Order also provides for a
stay of certain creditor claims against Jaguar during the CCAA
process.
Under the Initial Order, the Court also
appointed FTI Consulting Canada Inc. as monitor of Jaguar.
The Company has also obtained a Meeting Order
authorizing it to call a meeting of its unsecured creditors to
consider and vote on the plan of compromise and arrangement in
connection with the Recapitalization (the "Plan"), which
meeting has been scheduled for 10:00
a.m. on January 28,
2014. A motion for approval of the Plan by the Court
has been scheduled for January 30,
2014. The Company expects to complete the
Recapitalization by approximately February
15, 2014.
Additional information regarding Jaguar's CCAA
proceedings will be available on the monitor's website at
http://cfcanada.fticonsulting.com/jaguar.
Forward-Looking Statements
Certain statements in this press release constitute
"Forward-Looking Statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. These Forward-Looking Statements include,
but are not limited to, statements concerning the implementation of
the CCAA proceedings, the Recapitalization and the Company's future
financial condition. Forward-Looking Statements can be identified
by the use of words, such as "are expected", "is forecast", "is
targeted", "approximately" or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might", or "will" be taken, occur or be
achieved. Forward-Looking Statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results or performance to be materially different from any future
results or performance expressed or implied by the Forward-Looking
Statements.
These risks, uncertainties and other factors
relating to Jaguar include, but are not limited to, our level of
indebtedness and the continued deferral of the interest payment on
the 4.5% senior unsecured convertible notes due 2014; the
implementation and impact of the Recapitalization; our ability to
generate sufficient cash flow from operations or obtain adequate
financing to fund our capital expenditures and working capital
needs and meet our other obligations; the volatility of our stock
price, and the ability of our common stock to remain listed and
traded on the Recapitalization; our ability to maintain
relationships with suppliers, customers, employees, stockholders
and other third parties in light of our current liquidity situation
and the CCAA proceedings; the volatility of gold prices; a
continuation of depressed gold prices; regulatory and environmental
risks associated with exploration, drilling and production
activities; the adverse effects of changes in applicable tax,
mining and environmental and other regulatory legislation; the
risks of conducting operations in Brazil and the impact of pricing
differentials, fluctuations in foreign currency exchange rates and
political developments on the financial results of our operations.
The results, estimates, events or other forward-looking information
predicted in any Forward-Looking Statements may differ materially
from actual results or events if known or unknown risks, trends or
uncertainties affect Jaguar's business, or if Jaguar's estimates or
assumptions turn out to be inaccurate. The implementation of the
Recapitalization is subject to a number of conditions and other
risks and uncertainties including, without limitation, court and
any required regulatory approvals. Accordingly, there can be no
assurance that the Recapitalization will occur, or that it will
occur on the terms and conditions contemplated. The
Recapitalization could be modified, restructured or terminated.
These Forward-Looking Statements represent the
Company's views as of the date of this press release. The Company
anticipates that subsequent events and developments may cause the
Company's views to change. The Company does not undertake to update
any forward-looking statements, either written or oral, that may be
made from time to time by or on behalf of the Company subsequent to
the date of this discussion except as required by law. For a
discussion of important factors affecting the Company, including
fluctuations in the price of gold and exchange rates, uncertainty
in the calculation of mineral resources, competition, uncertainty
concerning geological conditions and governmental regulations and
assumptions underlying the Company's forward-looking statements,
see the "CAUTIONARY NOTE" regarding forward looking statements and
"RISK FACTORS" in the Company's Annual Information Form for the
year ended December 31, 2012 filed on
SEDAR and available at http://www.sedar.com and the Company's
Annual Report on Form 40-F for the year ended December 31, 2012 filed with the United States
Securities and Exchange Commission and available at
www.sec.gov.
About Jaguar Mining Inc.
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and owns the Gurupi
Project in Northeastern Brazil in
the state of Maranhão. The Company also owns additional mineral
resources at its approximate 210,000-hectare land base in
Brazil. Additional information is
available on the Company's website at www.jaguarmining.com.
SOURCE Jaguar Mining Inc.