Quadra Mining Ltd.

Quadra Mining Ltd.

May 19, 2009 11:22 ET

Quadra Mining Closes $37.5 Million Project Financing for Franke Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2009) - Quadra Mining Ltd. ("Quadra" or the "Company") (TSX:QUA) is pleased to announce that the Company has met all conditions for the previously announced $US 37.5 million syndicated project loan facility for development of its recently acquired Franke project (see Press Release March 20, 2009).

On closing of the loan, the Company drew down the full $30 million term loan component of the facility and the $7.5 million working capital facility is expected to be drawn down in the near future. The term loan will bear interest at LIBOR plus 5.75% (LIBOR + 6.75% for the working capital facility) with semi-annual principal repayments commencing in March 2010, and a final maturity date in March 2014. The loan also includes a 67% cashflow sweep by the lender, a parent company guarantee until economic completion, and other terms, conditions and covenants customarily associated with project finance facilities.

As required under the loan agreement, the Company has entered into 'zero cost collar' contracts and put option contracts for a total of 43 million lbs. of copper. The 'zero cost collar' contracts ensure that the Company will receive a minimum floor price of $1.80/lb. and a maximum price of $2.16/lb. for 28 million lbs. of copper sales between the fourth quarter of 2009 and the second quarter of 2010. The copper put option contracts were acquired at a cost of $5 million and ensure that the Company will receive a minimum floor price of $1.80/lb. for 15 million lbs. of copper during the third and fourth quarter of 2010.

Upon the acquisition of Centenario, Quadra assumed long-term debt of (net of hedge proceeds) of $39 million and this loan was repaid in full on May 14, 2009.

About Quadra:

Quadra is a mining company that owns and operates the Robinson copper mine ("Robinson Mine") near Ely, Nevada and the Carlota Mine ("Carlota"), a heap leach - SX/EW copper operation in Arizona. The Company also owns the Sierra Gorda project ("Sierra Gorda"), a late stage exploration property in northern Chile, through option agreements that were exercised in the second quarter of 2008, along with a 99% interest in the Malmbjerg molybdenum project ("Malmbjerg") in Greenland. On April 8, 2009, the Company completed the acquisition of Centenario Copper Corporation ("Centenario") and its 100% owned Franke project ("Franke"), a heap leach - SX/EW copper project under pre-production in northern Chile. Quadra's strategic plan includes growth by optimising operations, developing projects, and pursuing merger and acquisition opportunities.

Forward-Looking Information

This Press Release contains "forward-looking information" within the meaning of applicable securities laws. This forward-looking information includes the expectations of Quadra with respect to the draw down of its working capital facility.

Forward-looking information contained in this Press Release is subject to known and unknown risks, uncertainties and other factors that are not within the control of Quadra . Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and developed based on assumptions about such risks, uncertainties and other factors set out herein.

A discussion of factors that may affect Quadra's actual results, performance, achievements or financial position is contained in the filings by Quadra with the Canadian provincial securities regulatory authorities, including Quadra's Annual Information Form. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Quadra disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

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