Asian Mineral Resources Limited
TSX VENTURE : ASN

Asian Mineral Resources Limited

June 06, 2013 09:29 ET

Asian Mineral Resources Announces Project Financing Proposal With Lien Viet Post Bank

TORONTO, ONTARIO--(Marketwired - June 6, 2013) - Asian Mineral Resources Limited ("AMR") (TSX VENTURE:ASN) is pleased to announce that its 90% owned subsidiary, Ban Phuc Nickel Mines LLC ("BPNM"), is currently in advanced negotiations with Lien Viet Post Bank ("LVPB") on the provision of a US$20 million project financing loan (the "Project Debt") for its Ban Phuc Nickel Project. As part of this proposal, and pending final credit approval of the Project Debt, LVPB has granted an initial US$11 million loan to BPNM (the "Initial Loan"), secured by cash collateral from AMR's existing cash resources. The Initial Loan allows expenditure to bring the Ban Phuc Nickel Project into production to continue uninterrupted.

BPNM is currently working with LVPB to complete its credit approval process and finalization of definitive agreements for the Project Debt which, if approved and executed, will be subject to certain conditions precedent customary for a financing of this type. It is expected that, upon closing of the Project Debt, the Initial Loan will be replaced by the Project Debt and the cash collateral released. The Initial Loan has an interest rate of LIBOR plus 6.5% and may be repaid by BPNM at any time without restriction including if the terms of the Project Debt are not approved and agreed with LVPB.

Mr. Simon Booth, CEO of AMR, stated: "We are excited to be working in partnership with LVPB. AMR's continued focus on maximizing local Vietnamese content, in all aspects of the project, is an important aspect to ensuring the ongoing success of the project. The successful completion of project financing will position AMR to move from the milestone of first production at the end of June 2013, to sustainable positive cash flow".

AMR will provide an update on the Project Debt once credit approval has been obtained and definitive agreements have been executed with LVPB.

Company Profile:

Asian Mineral Resources Limited is developing the Ban Phuc Nickel Project, located 160 km north-west of Hanoi in Son La Province, which is owned by its 90% owned subsidiary Ban Phuc Nickel Mines LLC. The development of the project is in advanced stages, with underground and surface infrastructure near completion and production commencing in June 2013. For further details on AMR and the Ban Phuc Nickel Project, please refer to the company website at www.asianminres.com.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding obtaining LVPB credit approval and entering into definitive agreements with LVPB for the Project Debt, completion of the project, the commencement of production and the achievement of expected benefits, potential mineralization and reserve and resource estimates, exploration results and future plans and objectives of AMR are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AMR to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from AMR's expectations are disclosed under the heading "Risk Factors" in AMR's Annual Information Form, and elsewhere in AMR's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. Such forward-looking statements are based on a number of material factors and assumptions, including: obtaining LVPB credit approval, execution of definitive agreements with LVPB for the Project Debt, the satisfaction of conditions precedent for the Project Debt, estimated cost to bring the Ban Phuc Nickel mine into commercial production, that contracted parties provide goods and/or services on the agreed timeframes; that on-going contractual negotiations will be successful and progress and/or be completed in a timely manner; that application for permits and licences will be granted/obtained in a timely manner; that no unusual geological or technical problems occur; that plant and equipment work as anticipated and that there is no material adverse change in the price of nickel. Although AMR has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release. AMR disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that forward-looking 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 due to the inherent uncertainty therein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Asian Mineral Resources Limited
    Paula Kember
    Chief Financial Officer
    (416) 360-3412
    www.asianminres.com