European Bank for Reconstruction and Development (EBRD) Increases Investment in Tirex Resources
05 Janeiro 2011 - 12:32PM
Marketwired
Tirex Resources Ltd. ("Tirex") (TSX VENTURE: TXX) is pleased to
announce that the company has completed an agreement dated 30
December 2010 with the European Bank for Reconstruction and
Development (the "EBRD") through which an additional EUR 1,500,000
(approximately CAD $2,000,000) of funding is available to Tirex for
the advancement of the Mirdita District.
The new funding agreement comes during a time of substantial
progress at Mirdita. On December 13, 2010, Tirex announced results
from recent drilling which included a thick intercept of robust
mineralization assaying 19.3m (63.3 ft) of 3.66% Copper, 1.13% Zinc
and 1.2g/t Gold including 6.7m (22.0 ft) of 7.38% Copper, 1.77%
Zinc and 1.6g/t Gold at South Gurthi No. 2. Tirex is expecting
assays from several more holes drilled during the last quarter of
2010.
Additionally, mineral resource estimates based on Tirex
definition drilling to date for Koshaj, South Gurthi No. 1, Letitna
and South Gurthi No. 2 zones are now being calculated by SRK
Consulting (U.K.) Ltd. Tirex plans to conduct a Preliminary
Economic Assessment (PEA) of Koshaj, South Gurthi No. 1, Letitna
and South Gurthi No. 2. The PEA will start immediately upon
completion of resource calculations for the deposits, considering
potential production scenarios. There are 17 known historical
deposits on Tirex's property (9 of which were formerly in
production). Koshaj, South Gurthi No.1, Letitna and South Gurthi
No. 2 are the first four historical deposits that have been drill
tested by Tirex. Drilling of other historical deposits at Mirdita
will occur in 2011, targeting expansion of certain deposits on
strike and at depth. Most of the deposit areas have never been
tested with large scale, systematic and modern exploration.
The new EBRD facility totals EUR 1,500,000 (approximately CAD
$2,000,000). The funding is via a 25% expansion of the current
Tirex-EBRD convertible debenture facility with some additional
terms.
Funds will bear interest at EURIBOR plus 1.5% when drawn. The
new funds will be advanced under the terms of the facility for a
five year term, convertible in the first two years at the market
price at closing of the common shares of Tirex on the TSX Venture
Exchange as of the day immediately prior to the date of the loan
agreement, increasing 10% each year thereafter.
Interest may be compounded to the principal at Tirex's election
to the date of maturity and is convertible at the EBRD's election.
The funds will be available for Tirex to draw, subject to certain
business terms, and will require Tirex raising $3 in equity for
every $1 it draws from the facility. Funds can be drawn from the
facility by Tirex in a maximum of two tranches of an aggregate
amount of approximately CAD $2,000,000, convertible into 4,123,000
common shares of Tirex at the current strike price. This is
additional to the previous funding provided by EBRD to Tirex
through which the EBRD is able to convert a total of EUR 6,000,000
into common shares of Tirex. In total, once Tirex draws from the
enhanced facility, EBRD will have the option to convert EUR
7,500,000 of convertible debt into common shares of Tirex.
As of the date of the agreement, the EBRD had the right to
convert its outstanding convertible loans so as to hold 17,124,935
common shares of Tirex, representing approximately 23.3% of the
issued and outstanding shares of Tirex based on there being
56,243,312 common shares currently in issue (assuming the
conversion of the principal and interest but not including the
corresponding or concurrent equity Tirex raises in the future as a
condition to drawing on the facility). The EBRD has not converted
any part of its loan facility into common shares, and does not
currently hold any common shares in the capital of Tirex. As well,
the loan agreement restricts the conversion into common shares of
Tirex of any part of the loan facility that would result in EBRD
becoming a new control person. The EBRD has advised Tirex that no
other persons currently act jointly or in concert with the EBRD.
This portion of the press release is being issued pursuant to
National Instrument 62-103.
Further details on the company and the Mirdita Project including
a location map for the areas described in this news release can be
found on the Tirex website at www.TirexResources.com.
About European Bank for Reconstruction and Development
The EBRD, owned by 61 countries and two intergovernmental
institutions, is supporting the development of market economies and
democracies in countries from central Europe to central Asia.
www.ebrd.com The EBRD is located at One Exchange Square, London
EC2A 2JN, London, UK.
ON BEHALF OF TIREX RESOURCES LTD.
Bryan J.R. Slusarchuk, CEO and Director
Forward Looking Statements
This Tirex News Release may contain certain "forward-looking"
statements and information relating to Tirex that are based on the
beliefs of Tirex management, as well as assumptions made by and
information currently available to Tirex management. Such
statements reflect the current risks, uncertainties and assumptions
related to certain factors including, without limitations,
exploration and development risks, expenditure and financing
requirements, title matters, operating hazards, metal prices,
political and economic factors, competitive factors, general
economic conditions, relationships with vendors and strategic
partners, governmental regulation and supervision, seasonality,
technological change, industry practices, and one-time events. In
particular, it should be noted that the expansion of this
convertible debt facility referenced today may not close and if it
does not close in a timely manner, will not fund. Final loan
documentation has not yet been signed and will be further reviewed
by both Tirex and the EBRD prior to signing. Should any one or more
of these risks or uncertainties materialize or change, or should
any underlying assumptions prove incorrect, actual results and
forward-looking statements may vary materially from those described
herein.
"Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release."
Contacts: Tirex Resources Ltd. Bryan J.R. Slusarchuk CEO and
Director 604-687-7160 604-687-7165 (FAX) info@TirexResources.com
www.TirexResources.com
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