TORONTO, Dec. 23, 2013 /CNW/ - Jaguar Mining Inc. (Jaguar or the Company) announced today that, further to its announcement of earlier today,
the Company has obtained an Initial Order from the Ontario Superior
Court of Justice (Commercial List) under the Companies' Creditors Arrangement Act (CCAA).
The Initial Order authorizes Jaguar to commence a Court-supervised
refinancing and restructuring of its capital structure and related
obligations through the conversion of its unsecured debt into equity
and a share offering (the Recapitalization). The Initial Order also provides for a stay of certain creditor claims
against Jaguar during the CCAA process.
Under the Initial Order, the Court also appointed FTI Consulting Canada
Inc. as monitor of Jaguar.
The Company has also obtained a Meeting Order authorizing it to call a
meeting of its unsecured creditors to consider and vote on the plan of
compromise and arrangement in connection with the Recapitalization (the
"Plan"), which meeting has been scheduled for 10:00 a.m. on January 28,
2014. A motion for approval of the Plan by the Court has been
scheduled for January 30, 2014. The Company expects to complete the
Recapitalization by approximately February 15, 2014.
Additional information regarding Jaguar's CCAA proceedings will be
available on the monitor's website at http://cfcanada.fticonsulting.com/jaguar.
Certain statements in this press release constitute "Forward-Looking
Statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
legislation. These Forward-Looking Statements include, but are not
limited to, statements concerning the implementation of the CCAA
proceedings, the Recapitalization and the Company's future financial
condition. Forward-Looking Statements can be identified by the use of
words, such as "are expected", "is forecast", "is targeted",
"approximately" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might", or "will" be taken, occur or be achieved. Forward-Looking
Statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results or performance to be
materially different from any future results or performance expressed
or implied by the Forward-Looking Statements.
These risks, uncertainties and other factors relating to Jaguar include,
but are not limited to, our level of indebtedness and the continued
deferral of the interest payment on the 4.5% senior unsecured
convertible notes due 2014; the implementation and impact of the
Recapitalization; our ability to generate sufficient cash flow from
operations or obtain adequate financing to fund our capital
expenditures and working capital needs and meet our other obligations;
the volatility of our stock price, and the ability of our common stock
to remain listed and traded on the Recapitalization; our ability to
maintain relationships with suppliers, customers, employees,
stockholders and other third parties in light of our current liquidity
situation and the CCAA proceedings; the volatility of gold prices; a
continuation of depressed gold prices; regulatory and environmental
risks associated with exploration, drilling and production activities;
the adverse effects of changes in applicable tax, mining and
environmental and other regulatory legislation; the risks of conducting
operations in Brazil and the impact of pricing differentials,
fluctuations in foreign currency exchange rates and political
developments on the financial results of our operations. The results,
estimates, events or other forward-looking information predicted in any
Forward-Looking Statements may differ materially from actual results or
events if known or unknown risks, trends or uncertainties affect
Jaguar's business, or if Jaguar's estimates or assumptions turn out to
be inaccurate. The implementation of the Recapitalization is subject to
a number of conditions and other risks and uncertainties including,
without limitation, court and any required regulatory approvals.
Accordingly, there can be no assurance that the Recapitalization will
occur, or that it will occur on the terms and conditions contemplated.
The Recapitalization could be modified, restructured or terminated.
These Forward-Looking Statements represent the Company's views as of the
date of this press release. The Company anticipates that subsequent
events and developments may cause the Company's views to change. The
Company does not undertake to update any forward-looking statements,
either written or oral, that may be made from time to time by or on
behalf of the Company subsequent to the date of this discussion except
as required by law. For a discussion of important factors affecting the
Company, including fluctuations in the price of gold and exchange
rates, uncertainty in the calculation of mineral resources,
competition, uncertainty concerning geological conditions and
governmental regulations and assumptions underlying the Company's
forward-looking statements, see the "CAUTIONARY NOTE" regarding forward
looking statements and "RISK FACTORS" in the Company's Annual
Information Form for the year ended December 31, 2012 filed on SEDAR
and available at http://www.sedar.com and the Company's Annual Report
on Form 40-F for the year ended December 31, 2012 filed with the United
States Securities and Exchange Commission and available at www.sec.gov.
About Jaguar Mining Inc.
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and owns the Gurupi
Project in Northeastern Brazil in the state of Maranhão. The Company
also owns additional mineral resources at its approximate
210,000-hectare land base in Brazil. Additional information is
available on the Company's website at www.jaguarmining.com.
SOURCE: Jaguar Mining Inc.
For further information:
Chief Financial Officer