October 19, 2010 16:25 ET

Nordex Explosives Ltd. Announces Additional Financing of $560,000 With the Business Development Bank of Canada

KIRKLAND LAKE, ONTARIO--(Marketwire - Oct. 19, 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 Business Development Bank of Canada (BDC) to provide Nordex with loans for the purpose of financing specific equipment and vehicles.

Under the agreement, the loan amounts total $560,000 and are subject to repayment terms of 5 years of "straight line" payments. The loans are secured by a general security agreement providing a first security interest on specific equipment purchased. 

The interest rate on $225,000 of the loan(s) is a floating base rate (currently at 5.0%) plus a variance of 0.5%. The interest rate on $335,000 of the loan(s) is a floating base rate (currently at 5.0%) plus a variance of 1.5%.

With the addition of the two BDC loans the Company has now successfully secured a total of $1,760,000 in increased available financing over the last 30 days.

Nordex President Jacques Levesque states, "The Management and Board of Directors of the Company have elected at this time to use debt financing to fund the capital required to support our growth. This was chosen instead of an equity issue at a low share price with subsequent share dilution. Further, we are pleased to report our share value has increased from a closing price of $0.46 on July 8th to a closing price of $0.72 on October 18th."

With the approval and completion of these transactions, it provides Nordex with the necessary working and operating capital to continue to expand operations as product demands increase and market confidence in Nordex continues to grow.

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 forward-looking 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