October 14, 2010 17:01 ET

Nordex Explosives Ltd. Announces $2,200,000 Credit Facility With the Royal Bank Replacing Previous Credit Facility of $1,200,000

KIRKLAND LAKE, ONTARIO--(Marketwire - Oct. 14, 2010) -


LES EXPLOSIFS NORDEX LTEE/NORDEX EXPLOSIVES LTD. ("Nordex" or the "Corporation") (TSX VENTURE:NXX) announces that it has entered into an agreement with the Royal Bank (RBC) to provide Nordex with a credit facility up to $2,200,000 (the "Agreement). The credit facility is available to Nordex for an operating line and/or letters of credit of up to $1,200,000 and for a second credit facility for revolving term loans of up to $1,000,000.

Under the terms of the Agreement, the total combined credit available is equal to $2,200,000. Total borrowings under the Agreement must not exceed at any time the aggregate of (a) 75% of accounts receivable plus (to a maximum of $350,000) 25% of Unencumbered Inventory.

Based on these terms, the calculated credit available to Nordex at the end of August 2010 was $1,954,979.66.

Also, under the terms of the Agreement, the interest rate for the operating line (up to $1,200,000) is the RBC Prime Rate plus 0.75% per annum. The interest rate for the revolving term loans (up to $1,000,000) is the RBC Prime Rate plus 1.30%.

Nordex President Jacques Levesque states, "The increase in credit facilities available to us at more favourable rates is as a result of our ongoing growth as well as increasing confidence in our ability to achieve our performance objectives."

The Agreement replaces the credit facility Nordex previously had at another financial institution; an operating line and revolving credit line with a combined total credit of up to $1,200,000.

ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex trades on the TSX Venture Exchange under the symbol "NXX".

Forward‐Looking Statements

Certain information included herein may contain "forward‐looking statements" which reflect the current expectations of management of the Corporation regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward‐looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Corporation. Forward‐looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forwardlooking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Corporation's Management Discussion and Analysis and other public filings (copies of which may be obtained at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward‐looking statements. Although any forward‐looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Corporation cannot assure readers that actual results, performance or achievements will be consistent with these forward‐looking statements, and management's assumptions may prove to be incorrect. These forward‐looking statements are made as of the date of this press release, and, other than as required by law, the Corporation does not intend, and does not assume any obligation, to update or revise these forward‐looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information