PERTH, Australia, Nov. 7, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or the Company) (ASX: MBN) wishes to provide the following update.
In the Company Update announcement to the ASX dated 4 November 2013,
Mirabela advised that it had received notification from one of its two
customers, Votorantim Metais Niquel S.A. (Votorantim), that the main transformer at its Fortaleza smelter has malfunctioned
and as such the electric furnace is not able to operate. Votorantim has
claimed that these circumstances are an event of force majeure and that
as a result it is not currently obligated to purchase nickel
concentrate pursuant to the Concentrate sale agreement (Sales Agreement).
Mirabela has the following significant debt structures currently in
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); and
US$55 million master funding and lease agreement with Caterpillar Financial Services Corporation. Year to date the
outstanding balance is US$11.23 million.
Mirabela has taken preliminary legal advice from its legal 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
As outlined in the Company Update announcement to the ASX on 31 October
2013, Mirabela is currently discussing standstill arrangements with its
financiers, including Bradesco.
SOURCE: Mirabela Nickel Ltd.
For further information:
Mirabela Nickel Limited
Telephone: +61 8 9324 1177