Eastern Platinum Limited
TSX : ELR
AIM : ELR
JSE : EPS

Eastern Platinum Limited

February 01, 2011 09:00 ET

Eastern Platinum Limited: Final Credit Approval Received for US$100 Million Debt Finance

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Eastern Platinum Limited (the "Company" or "Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report that further to its press release of October 28, 2010 announcing the signing of a mandate letter, it has now received formal letters of commitment to underwrite a US$100 million financing package to be used to part fund the development costs of its Mareesburg Project and the construction costs of the associated concentrator. As previously reported, the mandated lead arrangers are UniCredit Bank AG, London Branch and The Standard Bank of South Africa Limited (together the "MLAs").

The commitments are on the basis of detailed term sheets which have been agreed with the Company and the MLAs. The terms and conditions of the financing package include:

  • Underwriting by MLAs on a 50/50 basis and not subject to syndication
  • Scheduled tenor of 5.5 years with an 18 month grace period
  • Separate term loan and revolving loan facilities 
  • Initial interest rate of US LIBOR + 3.85% rising to US LIBOR + 4.15% for the last three years of the loan. US one-month LIBOR currently sits at approximately 0.26%.
  • No hedging

The underwriting commitments of the MLAs are subject to acceptable legal documentation and customary conditions precedent.

Upon the completion of the legal documentation, the Company will have approximately US$450 million in cash and undrawn credit facilities available for development of its Eastern Limb projects and for general corporate purposes.

Total shares issued and outstanding: 908,041,254

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

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No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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