PERTH, AUSTRALIA, Oct. 1, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or the Company) (ASX: MBN, TSX: MNB) wishes to provide the following update.
In the Company and Operational Update announcement to the ASX dated 26
September 2013, Mirabela advised that it had received notification from
one of its two customers, Votorantim Metais Niquel S.A. (Votorantim), that Votorantim intends to close their smelting facilities from
November 2013 due to the adverse nickel market conditions. Votorantim
considers that the concentrate sales agreement with Mirabela will
terminate at the end of November 2013.
Mirabela has two significant debt structures currently in place:
Mirabela's subsidiary, Mirabela Mineração do Brasil Ltda, has a US$50
million facility with Banco Bradesco S.A., which is secured by the
Company's contract with Votorantim (Bradesco Facility)
Mirabela has on issue approximately US$395 million of 8.75% senior
unsecured notes due 2018 (Notes)
Mirabela has taken preliminary legal advice from its Australian counsel
and is of the view that the notice received from Votorantim may
constitute an event of default under the Bradesco Facility. If an event
of default is triggered under the Bradesco Facility, and Bradesco
chooses to enforce its rights by accelerating repayment, a cross
default under the Notes may also be triggered.
As required under the Bradesco Facility, Mirabela has provided notice of
the potential event of default to Bradesco.
Given that the Bradesco Facility and the Notes are both governed by New
York law, the Company is seeking confirmatory legal advice from its US
counsel in relation to these matters.
SOURCE: Mirabela Nickel Ltd.
For further information:
General Manager Commercial
Telephone: +61 406 424 916
Chief Financial Officer & Company Secretary
Telephone: +61 439 930 333