Mawson West Ltd.

June 07, 2012 09:06 ET

Mawson West Announces US$30 Million Debt Financing

PERTH, AUSTRALIA and TORONTO, ONTARIO--(Marketwire - June 7, 2012) - Mawson West Ltd. (TSX:MWE) ("Mawson" or the "Company") is pleased to announce that it has received from RMB Resources Limited ("RMB") of Sydney, Australia a credit-approved debt financing commitment to provide a US$30 million working capital facility to partly finance development of the cut-back of the Dikulushi copper-silver mine, the development of the Kapulo open pit copper mine and for related corporate purposes.

The RMB facility is credit-approved subject to standard working capital financing conditions, including definitive legal documentation, permitting requirements and no material adverse change provisions. The facility will be secured by a charge over the assets of the Company and its principal operating subsidiary, based in the Democratic Republic of Congo ("DRC"). Security will also be granted over the shares in the Company's DRC subsidiary. The RMB facility contains normal commercial terms including commitment and arrangement fees payable to RMB. Amounts drawn under the facility will bear interest at a rate of LIBOR plus 8% per annum. Amounts outstanding under the loan will be repaid in four equal quarterly instalments commencing June 30, 2013 and ending March 31, 2014. Initial drawdown of the facility is expected by the end of June 2012.

David Frances, Mawson's President and CEO, stated: "The RMB debt financing is another important milestone for Mawson, and will provide the Company with additional financial resources and funding flexibility to complete the Dikulushi cut-back and continue progress on the development of the Kapulo project."

The cut-back at the Dikulushi copper-silver mine is on track to commence production in the third quarter of 2012. In the meantime, following the successful completion of the processing of the low-grade stockpile at the Dikulushi mine in February 2012, production has commenced from the nearby Boomgate deposit and will continue until commencement of production from the cut-back. At the Kapulo project, the project schedule has been substantially slowed down by the Company to remain in line with the projected cash-flows from the Dikulushi cut-back. However, construction is continuing with site civil works being well advanced. The camp and a substantial portion of the mine offices have already been completed. Commencement of production is anticipated to be achieved in the second half of 2013. As at March 31, 2012, Mawson had an unaudited cash balance of approximately US$54.5 million.

About Mawson West Ltd.

Mawson West Ltd. is an Australian-based copper producer, developer and explorer listed on the Toronto Stock Exchange. Mawson's focus is on the DRC, and its major asset is its 90% ownership in tenements located in the south-eastern part of the country in the Katanga Province, comprising some 7,300 km2 of contiguous tenure. The tenements encompass the Company's two main projects, the Dikulushi copper-silver mine and the Kapulo copper exploration and development project, as well as multiple exploration targets, which are all governed by the Dikulushi Mining Convention.

Mawson's principal objectives are to expand copper production at the Dikulushi mine, commence copper production at the Kapulo project and further explore the area governed by the Dikulushi Mining Convention to identify new targets. Mawson is also investigating other opportunities in the DRC and elsewhere which have the capacity to increase the Company's production in copper and other metals.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.

Contact Information

  • Mawson West Ltd.
    David Frances
    President and Chief Executive Officer
    61 8 9321-9669
    61 8 9481-2394 (FAX)