Robex Resources Inc.

Robex Resources Inc.

July 31, 2014 16:10 ET

Robex Secures Temporary Financing of $3.5 Million for the Nampala Mine

QUÉBEC CITY, QUÉBEC--(Marketwired - July 31, 2014) - Robex Resources inc. ("Robex" or the "Company") (TSX VENTURE:RBX)(FRANKFURT:RB4) confirms the closing of a CDN$3.5 million temporary credit facility (the "Credit Facility") provided by Mr. Georges Cohen, President and CEO of the Company. The Credit Facility has a term expiring on May 31, 2015, bears an interest rate of 8% per year and is guaranteed by a second rank hypothec on the present and future movable property of the Company as security for the Credit Facility.

The purpose of the Credit Facility is to meet the temporary cash flow needs of the Company as it prepares to enter into the production phase of its Nampala mine in Mali (the "Mine"). This cash flow need is attributable to the report of a few weeks of the completion of the first doré bullion bar pour, resulting from additional delays in gold room commissioning. These technical challenges do not jeopardise the production capabilities of the Mine nor should result into financial losses. Effectively, despite the report of the completion of the first doré bullion pour, gold ore processing is still ongoing at the rate of 2,500 tons per day and thus, should not result into any financial losses for the Company. As at July 19th, CIL circuit was containing 26.7 kg of gold (857 ozt). During the course of the second quarter of 2014, the mining continued in the Nampala pit, for a total of 840,000 excavated metric tons; including 78,000 metric tons of ore at a grade of 0.9 g/t.

The Credit Facility is a related party transaction that was unanimously approved by the independent members of the board of directors of Company. The members of the Cohen family that are also members of the board of directors of Company, abstained to vote on this resolution.

A material change report has concurrently been filed by the Company which is less than 21 days prior to the closing of the financing. This is explained by the immediate cash flow needs of Nampala S.A. which otherwise would have delayed the achievement of the Company's production objectives.

Augustin Rousselet, chief of finances (CFO) and chief of operations (COO) of Company declares: "The obstacles encountered at the Nampala Mine are normal in the context of the final phases of entering into the production phase of the gold elution process. However, since the solutions to these obstacles are well known and available on the market, we will rectify the situation within the next few weeks"

About Robex

Robex is a junior Canadian mining exploration & development company with nine permits located in Mali, western Africa. The shares of Robex are traded in Canada on the TSX Venture Exchange (TSX VENTURE:RBX) and in Germany on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) (FRANKFURT:RB4). Mali is currently Africa's third most important gold producing country.

Forward-Looking Statements

The TSX Venture Exchange or its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts no liability for the authenticity or accuracy of this release.

This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex's control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavourable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex's management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.

Contact Information

  • Rodrigue Gilbert
    Head of Corporate Communications
    Cell : (613) 808-7435
    Phone : (581) 741-7421