Alexis Obtains Approval for $45 Million Debt Financing for Snow Lake and Announces Proposed Restructuring With Share Consolid...
May 29 2012 - 10:40AM
Marketwired
ALEXIS MINERALS CORPORATION (TSX:AMC)(OTCQX:AXSMF) ("Alexis" or the
"Company") is pleased to announce that it has received formal
credit approval from Credit Suisse for a US $45 million, 4 1/2-year
term loan to further the development of the Snow Lake Mine.
The terms of the agreement include a US $45 million term loan
bearing interest of LIBOR + 5% and a hedging program to be agreed
to between the parties. The loan will be subject to covenants
standard to this type of arrangement and other conditions
precedent, including an equity contribution prior to draw down on
the loan, the details of which will be released upon finalization
of definitive agreements in respect of the debt financing. The use
of proceeds of the combined debt and equity financing will include
the restart of the Snow Lake mine, repayment of the current bridge
loan and for general corporate expenses.
The Snow Lake mine was most recently operated as the New
Britannia Mine until it was closed in 2005. Alexis took ownership
of the New Britannia Mine when it acquired Garson Gold in 2009 (see
release dated October 20, 2009). Since the acquisition, Alexis has
increased the resource, and completed a feasibility study (see
release dated November 3rd, 2010) and consolidated the land
position around the mine. Initial capital expenditure for the
restart of the Snow Lake mine is estimated at approximately $45
million. Alexis expects that once the pre-production stage is
complete, the mine should produce 80,000 per year(i). Exploration
is also planned to continue on the 88 square kilometre
property.
Alexis is being advised on the financing by Auramet Trading, LLC
("Auramet") of Fort Lee, New Jersey, USA. Auramet is a full service
merchant, trader, financier and advisor in the mining sector.
In conjunction with the financing announcement, the Company is
also proposing a 20:1 share consolidation (the "Consolidation") at
its upcoming annual and special meeting of shareholders to be held
on June 13, 2012 (the "Meeting")
Pursuant to the Consolidation, one post consolidated common
share of the Company will be issued for every 20 pre-consolidated
common shares of the Company. There are currently 597,026,077
common shares of Alexis issued and outstanding. Upon completion of
the Consolidation there would be approximately 29,851,304 common
shares of the Company issued and outstanding. The change in the
number of issued and outstanding common shares that would result
from the Consolidation would not materially affect any
shareholder's percentage ownership in Alexis although such
ownership would be represented by a smaller number of common
shares. The proposed Consolidation is subject to the approval, by
special resolution, of the shareholders of Alexis and the approval
of the TSX.
At the Meeting, Alexis will also propose a name change to "QMX
Gold Corporation" (the "Name Change") to reflect the transition to
larger scale production. The proposed name change is subject to the
approval, by special resolution, of the shareholders of Alexis, and
the approval of the TSX.
Commenting on the financing and proposed changes for Alexis,
Francois Perron adds: "This is the moment that shareholders have
been waiting for. I am extremely happy that we were able to come to
an agreement with Credit Suisse on a financing arrangement that
management and the board feel benefits the Company and our
shareholders. The project team at Snow Lake has continued to
advance the project and our ability to attract a financing partner
such as Credit Suisse demonstrates the robustness of the project.
We will soon be ready to move forward on our project at Snow Lake,
which is expected to transform the company. As part of this
transformation, I am pleased to announce that we are proposing a
share consolidation to establish a capital structure appropriate
for a Company that should reach a combined 100,000 ounces of annual
production once the Snow Lake reaches commercial production.
Finally, I am pleased to announce that we will be changing the name
of the company to QMX Gold Corporation to reflect the evolution of
the company as it moves forward with its existing mine in "Q"uebec,
its project in "M"anitoba as well as the continued e"X"ploration of
these properties."
(i)Snow Lake Mine Re-activation Project Technical Report NI
43-101, December 10. 2010 prepared by Mr. Andre Roy Eng.
Qualified Person
Technical programs and information included in this release have
been supervised, compiled, reviewed and approved by David Rigg,
P.Geo., the Co-Chairman of the Company and a Qualified Person as
defined under NI 43-101.
About Alexis Minerals
Alexis Minerals Corporation is a Canadian publicly traded mining
company concentrating on exploration and mine development. The
Company is listed on the Toronto Stock Exchange ("TSX") under the
symbol "AMC", and trades in the United States on the Over the
Counter QX International ("OTCQX") platform under the symbol
"AXSMF". Alexis Minerals is a dynamic and aggressive mining company
operating in Canada's richest mining regions: Val-d'Or &
Rouyn-Noranda, Quebec, and Snow Lake, Manitoba. Alexis continues
production and exploration in the mineral rich Val-d'Or area with
property covering over 1,000 km2. The Company also continues work
on its newest property at the Snow Lake Mining Camp. Alexis is now
in its third full year as a junior gold-producing company and gold
production is a priority as the company targets mid-tier gold
production levels.
Forward-looking information:
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
statements with respect to the completion of this transaction,
receipt of regulatory approvals, timing and amount of future
exploration and development of the property, the timing and amount
of future production, the future financial or operating performance
of Alexis and its projects, and the completion of the Consolidation
and the Name Change. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to those risks described in the annual information form of
the Company, which is available under the profile of the Company on
SEDAR. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
Contacts: Alexis Minerals Corporation Francois Perron President
and CEO (416) 309-2952 Alexis Minerals Corporation Louis Baribeau
Public Relations (514) 667-2304 Alexis Minerals Corporation Rob
Hopkins Investor Relations (416) 861-5899 Toll free: 1
877-717-3027info@alexisminerals.com www.alexisminerals.com
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