Starcore International Ventures Ltd.

Starcore International Ventures Ltd.

December 04, 2006 06:00 ET

Starcore International Ventures Ltd.: US$13 Million Debt Financing Secured for the Acquisition of San Martin Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 4, 2006) - Starcore International Ventures Ltd. ("Starcore") (TSX VENTURE:SAM) is pleased to announce that it has secured debt facilities (the "Facilities") for US$13 million from Investec Bank (UK) Limited ("Investec"). Starcore has mandated Investec to arrange the Facilities for Starcore and its wholly owned Mexican subsidiary to complete the acquisition of the San Martin Mine from Luismin S.A. de C.V. ("Luismin"), a wholly owned subsidiary of Goldcorp, Inc. (TSX:G)(NYSE:GG).

Investec is an international specialist banking group that provides a diverse range of financial products and services. The Facilities to be arranged by Investec will be comprised of Convertible Loan Facilities in two tranches totalling US$13 million and a gold hedging facility to support the debt repayment profile. To maximise upside for Starcore's shareholders the gold hedging facility will commit no more than 50% of projected gold production during the life of the Facilities.

Investec shall underwrite all of the Facilities subject to certain terms and conditions and shall be paid an underwriting fee, payable on the first drawdown under the Facilities. Should Starcore elect not to proceed with raising the Facilities, Starcore will be required to pay Investec a "Break Fee" as stipulated in their mandate letter.

Investec's underwriting commitment is subject to completion of satisfactory due diligence and loan documentation.

The Facilities will be used by the Company to complete the acquisition of the San Martin Mine from Luismin which is located 50 km east of the City of Queretaro, State of Queretaro, Mexico. Closing date for the acquisition has been extended to January 24, 2007 by Luismin to allow all parties to satisfy all conditions of the closing.


Robert Eadie, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Starcore International Ventures Ltd.
    Robert Eadie
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)