CALGARY, Nov. 26 /CNW/ - Birch Mountain Resources Ltd. ("Birch Mountain"
or the "Company") (BMD: TSX and AMEX) has signed a term sheet with the
Company's existing senior lender, for up to $31.5 million in the form of a
floating rate convertible senior secured debenture (the "Convertible
Debenture") to be issued to Brookfield Bridge Lending Fund Inc.
("Brookfield"). The Convertible Debenture will mature on June 30, 2012. The
proceeds of the financing will be used to repay and replace the existing
senior secured loan facility provided in March 2007 by Brookfield to Birch
Mountain and for general corporate purposes. Closing of this financing is
expected to occur on or about December 7, 2007.
Brookfield has also advanced to Birch Mountain the remaining $3 million
under the existing loan facility.
The Company has chosen to work with Brookfield for its near and medium
term financial requirements and is pleased with their strong on-going
commitment to the Company's mission and strategies.
The strategic review initiated by the Board of Directors in September
2007 will be on-going as the Company continues with its operational growth and
ongoing development of the Muskeg Valley Quarry and the Hammerstone Project.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the Convertible Debenture or common shares
within the United States. The Convertible Debenture or common shares have not
been and will not be registered under the United States Securities Act of
1933, as amended (the "1933 Act"), or any state securities laws. Accordingly,
the Convertible Debenture or the common shares may not be offered or sold in
the United States or to U.S persons (as such terms are defined in Regulation S
under the 1933 Act) unless registered under the 1933 Act and applicable state
securities law or an exemption from such registration is available.
Forward Looking Statements: This news release contains certain
forward-looking statements. All statements, other than statements of
historical fact, included herein, including without limitation, statements
regarding potential mineralization, resources and reserves, exploration and
development plans and results, anticipated capital expenditures and financing
thereof, anticipated outcomes and timing of regulatory applications and
approvals and the future plans and objectives of Birch Mountain are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Certain amounts in the financial statements are based on
estimates using the best currently available information and assumptions of
management. Important factors that could cause actual results to differ
materially from Birch Mountain's expectations are disclosed elsewhere in
documents that are available to the public at www.sedar.com and www.sec.gov.
For further information:
For further information: Birch Mountain Resources Ltd., Tel (403)
262-1838, Fax (403) 263-9888, www.birchmountain.com