Central Sun Signs Indicative Term Sheet for a Total of US$22.5 Million of Debt Funding
10 Setembro 2008 - 1:32PM
Marketwired
Central Sun Mining Inc. ("Central Sun" or the "Company") (TSX: CSM)
(TSX: CSM.WT) (AMEX: SMC) is pleased to announce that it has signed
an indicative term sheet for a total debt package of US$22.5
million over a four year term. Closing of the facility is subject
to the bank's internal credit approval process, the conclusion of a
satisfactory due diligence process, satisfactory definitive
documentation and the obtaining of all the required regulatory
approvals. The debt package is to be structured as a $US20.0
million senior debt facility and a $US2.5 million standby debt
facility and will be secured by way of a first ranking security
interest over the Orosi project assets and corporate support from
Central Sun until the project has reached its projected steady
state of production. The senior debt facility will be used to
finance the development, capital works and commissioning of the
Orosi Mine mill project. The standby debt facility will be
available to fund up to 50% of additional capital and/or operating
costs to a maximum of $US2.5 million with the Company injecting a
matching amount plus any remaining working capital which may be
required. The Company is aiming to have the debt package in place
before the end of November 2008.
Central Sun is currently converting the Orosi Mine from a heap
leach operation to a conventional milling operation. Based on
extensive metallurgical testing, once the conversion is complete
recoveries are anticipated to increase from 38% previously being
achieved from heap leaching to over 90% with the new conventional
milling. Commissioning of the new mill is expected in the first
quarter of 2009 with production at a rate of approximately 85,000
ounces of gold per year. A positive feasibility study was completed
in May 2008 by Scott Wilson Roscoe Postle Associates Inc. The mill
construction is progressing as planned and all permits required for
production are in place.
About Central Sun Mining Inc.
The Company is a growing gold producer with mining and
exploration activities focused in Nicaragua. The Company operates
the Limon Mine in Nicaragua and is converting the Orosi Mine in
Nicaragua to conventional milling to increase the annual gold
output. It also holds an option to acquire a 100% interest in the
Mestiza gold property which is located 70 kilometres by road east
of the Limon Mine. The Company is focused on efficient and
productive mining practices to establish high quality and cost
effective operations. Central Sun Mining Inc. is committed to
growth by optimizing current operations, expanding mineral reserves
and resources at existing mines, exploring its extensive land
holdings and seeking strategic mergers or acquisitions in the
Americas.
Cautionary Note Regarding Forward-Looking Statements: This news
release contains certain "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, and "forward-looking information" under similar
Canadian legislation, concerning the business, operations and
financial performance and condition of the Company. Forward-looking
statements and risk factors include, but are not limited to,
statements with respect to the implementation of the Company's
strategic plan; the future financial or operating performance of
the Company, its subsidiaries and its projects; the future price of
gold; expectation that the Orosi Mill feasibility study will be
positive; capital requirements for completion of the Orosi Mill
project; successful implementation of the Orosi Mill project; the
estimated Orosi Mill recovery rates; the estimation of mineral
reserves and resources, the realization of mineral reserve
estimates; the timing and amount of estimated future production;
costs of production; operating and exploration expenditures; mining
or processing issues; costs and timing of the development of new
deposits; costs, timing and success of future exploration;
government regulation of mining operations; permitting time lines
and permitting; labour disruptions; environmental risks;
unanticipated reclamation expenses; title disputes or claims;
limitations on insurance coverage; and the timing and possible
outcome of pending litigation and regulatory matters. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "anticipates" or "believes" 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 are based on the opinions and
estimates of the Company as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to: general business,
economic, competitive, political and social uncertainties; the
actual results of current exploration activities; actual results of
reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
future prices of gold; possible variations of ore grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the
mining industry; political instability, insurrection or war; delays
in obtaining governmental approvals or required financing or in the
completion of development or construction activities, as well as
those factors discussed in the section entitled "General
Development of the Business - Risks of the Business" in the
Company's annual information form for the year ended December 31,
2007 on file with the securities regulatory authorities in Canada
and the Company's Form 40-F on file with the Securities and
Exchange Commission in Washington, D.C.. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities laws.
Contacts: Central Sun Mining Inc. Peter W. Tagliamonte President
and CEO (416) 860-0919 (416) 367-0182 (FAX) Central Sun Mining Inc.
Denis C. Arsenault CFO (416) 860-0919 (416) 367-0182 (FAX) Email:
ir@centralsun.ca
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