SHANGHAI, Oct. 13,
2023 /PRNewswire/ -- Scully Royalty Ltd. (the
"Company") (NYSE: SRL) announces that the operator of the Scully
mine has obtained an initial court order commencing proceedings
under the Companies' Creditor's Arrangement Act (Canada) ("CCAA").
In connection with the CCAA proceedings, the operator of the
mine announced that it had reached agreement for a US$75 million loan facility
(debtor-in-possession), which it stated will enable it to continue
operating in the ordinary course until a transaction or
restructuring is completed.
The Company currently has various outstanding claims against the
operator that are subject to a stay under the initial CCAA order,
including royalties for the second quarter of 2023 of approximately
C$5.865 million and a disputed claim
for previously underpaid royalties which was subject to
arbitration.
"We are encouraged by this development as it provides the
operator with additional capital and a path towards increased
production at the Scully Mine," commented Samuel Morrow, Chief Executive Officer of
Scully Royalty. "We are an
integral stakeholder of the Scully Mine and our goal remains to
maximize earnings and dividends to our shareholders based upon our
iron ore royalty interest over the long-term."
Forward-Looking Statements
This news release contains statements which are, or may be
deemed to be, "forward– looking statements" which are prospective
in nature, including statements regarding the expectations and
disclosed plans of the operator of the Scully Mine and potential
developments in its CCAA process and any other statements regarding
beliefs, expectations or intentions regarding the future.
Forward-looking statements are not based on historical facts, but
rather on current expectations and projections about future events,
and are therefore subject to risks and uncertainties which could
cause actual results to differ materially from the future results
expressed or implied by the forward-looking statements. Often, but
not always, forward-looking statements can be identified by the use
of forward-looking words such as "plans", "expects", "estimates",
"intends", "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"should", "would", "might" or "will" be taken, occur or be
achieved. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
revenues, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Important factors that
could cause actual results, revenues, performance or
achievements to differ materially from expectations include, among
other things: (i) any inability of the operator of the mine to
complete the CCAA process as planned or otherwise realize upon the
expected benefits thereof; (ii) risks inherent to CCAA and similar
restructuring processes; and (iii) any inability of the operator to
satisfy conditions to expected financing to maintain operations in
the normal course. Such forward-looking statements should therefore
be construed in light of such factors. Other than in accordance
with its legal or regulatory obligations, the Company is under no
obligation and it expressly disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Additional
information about these and other assumptions, risks and
uncertainties is set out in the "Risk Factors" section of the
Company's most recent Annual Report on Form 20-F and its other
public disclosure documents available under its profile at
www.sec.gov.
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SOURCE Scully Royalty Ltd.
