New Millennium Capital Corp.

New Millennium Capital Corp.

August 23, 2007 17:51 ET

New Millennium Capital Corp. Reports Exposure to Asset-Backed Commercial Paper Market

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2007) -


New Millennium Capital Corp. ("NML" or "the Company") (TSX VENTURE:NML) today announced that it invested $4,400,283 on June 15,2007 in Structured Investment Trust III, Series A ("SIT"). This asset-backed commercial paper ("ABCP") had a credit rating of R-1 High (highest rating available for short-term commercial paper) by Dominion Bond Rating Service ("DBRS"). The SIT is administered by Coventree Capital Group Inc. ("Coventree") and is due and payable on September 13, 2007.

Coventree announced in mid August that it was unable to meet its current repayment obligations of its then maturing ABCP owing to market disruptions that were precipitated by the sub-prime mortgage problem in the U.S. To mitigate this problem a number of major players in Canada's financial markets met in Montreal on August 16, 2007 to work out a solution to the liquidity problem affecting ABCPs.

Repayment of NML's SIT on September 13, 2007 will depend upon the ability of Coventree's liquidity providers to fund such repayments or some other short-term solution currently being considered by the Canadian banks and financial institutions to mitigate the ABCP problem. NML continues to monitor these developments.

The company believes that it has sufficient cash to continue its 2007 work program, but will reassess its situation if the September 13, 2007 SIT maturity date is deferred.

NML also has $1.3 million in other ABCPs backed by natural gas giant EnCana Corporation and Transcanada Pipelines Ltd. These notes are not considered problematical owing to the high quality of the assets backing these securities. As of August 17, 2007 a total of about $5.7 million of New Millennium's $10.4 million in cash and cash equivalents and term deposits was invested in Canadian ABCPs.

About New Millennium

New Millennium holds a 100% interest in the KeMag Property (Quebec) and an 80% interest in the LabMag Property (Newfoundland and Labrador). Both properties are located within the Millennium Iron Range, the centre of which is located approximately 230 km north of Labrador City, NF and 40 km northwest of Schefferville, QC.

Subject to the completion of positive feasibility studies, project financing and project construction, the concentrate from the KeMag Project would be pumped from the property through a slurry pipeline, about 750 kilometers, to the Port of Sept-Iles, QC, where it would be both pelletized and sold as concentrate. The concentrate from the LabMag Project would be pumped from the property through a slurry pipeline, about 230 kilometers, to Emeril, NL where it would be pelletized prior to rail transportation via an existing railroad about 390 km to the Port of Sept-Iles.

These projects envision the construction and operation of ship loading facilities and related infrastructure at the Sept-Iles terminus where the various iron ore products would be shipped by ocean vessels to markets in Canada, the United States, Western Europe, North Africa, the Middle East and Asia.

The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials to the world's iron and steel industries. For further information, please visit

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. 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. New Millennium does not assume any obligation to update any forward looking information contained in this news release.

No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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