bcMetals Corporation

bcMetals Corporation

October 11, 2005 17:42 ET

bcMetals Corporation: Investec Awarded Mandate to Provide Red Chris Project Debt Finance

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2005) - bcMetals Corporation (TSX VENTURE:C) is pleased to announce Board approval to execute a Mandate Letter and Term Sheet from Investec Bank (UK) Limited ("Investec") of London, United Kingdom to provide debt financing for the Company's Red Chris copper-gold porphyry project in northwestern British Columbia.

The Term Sheet provides for Investec, as the Lead Bank and Arranger of a consortium of international banks, to provide debt finance in an amount of US$110 million with repayment over seven years commencing in year three following a two-year construction period. Interest payable is US LIBOR plus 2.8% during construction and US LIBOR plus 2.6% during commercial production. Up to US$8 million of this could be in the form of convertible debt and would be subject to regulatory approval.

One of the conditions precedent for loan draw down is the BC Government's commitment to extend the North American power grid up the Highway 37 corridor to Iskut in time for Red Chris to meet its currently planned construction schedule for first concentrate production in late 2007.

The Red Chris project, as designed in the AMEC Feasibility Study, is a 30,000 tpd open pit mine and flotation concentrator located 12 km east of Highway 37 and 18 km south of the village of Iskut. Over the course of the currently envisaged 25-year mine life the project will produce 1.85 billion pounds of Cu and 1.187 million ounces of Au in concentrates. Red Chris today is the largest new Cu-Au open pit project in North America being readied to commence construction with its Environmental Assessment Certificate approved by the BC Government.

The Company is also in active discussions with concentrate buyers and smelters for the sale of its concentrates and expects to announce agreements very shortly.

Ian Smith, President and CEO

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • bcMetals Corporation
    Ian Smith
    President and CEO
    (604) 683-0140
    (604) 683-0126 (FAX)