SOURCE: Alloycorp Mining Inc.

Alloycorp Mining Inc.

June 30, 2015 20:00 ET

Alloycorp Announces Extension of Loan Facilities

TORONTO, ON--(Marketwired - June 30, 2015) - Alloycorp Mining Inc. (TSX VENTURE: AVT) ("Alloycorp" or the "Company") announced today that it has entered into agreements to extend the maturity dates of its existing loan facilities with Resource Capital Fund.

Specifically, the agreements extend the US$50 million bridge loan facility dated November 18, 2014, among the Company, Avanti Kitsault Mine Ltd. ("Avanti Kitsault") and Resource Capital Fund VI L.P. ("RCF VI"), the US$50 million preconstruction loan facility dated December 19, 2013 and amended on December 31, 2014, among the Company, Avanti Kitsault and RCF VI and the US$20 million bridge loan facility dated July 12, 2013 and amended on December 31, 2014, among the Company, Avanti Kitsault, Resource Capital Fund IV L.P. ("RCF IV") and RCF VI (together with RCF IV, "RCF").

The extension agreements provide that the maturity date of each facility will be extended initially to July 31, 2015 and may be further extended in one month increments by RCF through and until December 31, 2015. No consideration will be payable by the Company to RCF in connection with the extensions and the extensions contain certain additional covenants of the Company. A copy of the extension agreements have been filed by the Company on www.sedar.com.

About Alloycorp

Alloycorp is a TSX-Venture listed company headquartered in Toronto with an operations office in Vancouver. Alloycorp's strategy is to become the unique supplier of steel alloy metals. Cornerstone to this strategy is the development of the Avanti Kitsault project. Parallel to this, Alloycorp is seeking to grow through the acquisition of other assets with commodities that supply to the steel alloys industry.

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 release.

Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Alloycorp. All statements, other than statements of historical fact, included herein, including, without limitation, the anticipated development of the Avanti Kitsault project and future acquisition of assets, are forward-looking statements. These forward- looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; and other risks and uncertainties disclosed in the Company's Annual Information Form for the year ended December 31, 2014, which is available at www.sedar.com. The Company is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • For further information, please contact:

    Shawn Howarth
    Vice President, Corporate Development and Investor Relations
    (416) 847-0376