Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Feb. 20 /CNW Telbec/ - Blue Note Mining Inc. ("Blue Note" or
the "Corporation") reports that its wholly-owned subsidiary, Blue Note Caribou
Mines Inc. ("Caribou"), has obtained today an order from the New Brunswick
Court of Queen's Bench for creditor protection pursuant to the provisions of
the Companies' Creditors Arrangement Act ("CCAA").
The New Brunswick Court of Queen's Bench has granted CCAA protection for
an initial 30 days expiring on March 22, 2009, to be extended thereafter as
the Court deems appropriate. The CCAA protection will stay creditors,
suppliers and others from enforcing any rights against Caribou while Caribou
reviews the various alternatives for the restructuring of its affairs.
The Court also authorized Caribou to borrow up to $1,000,000 to fund its
care and maintenance program at its Restigouche and Caribou Mines (the
"Caribou Mines"). Caribou's Board of Directors determined that seeking
creditor protection is in the best interests of Caribou, its creditors,
shareholders, employees, customers and other stakeholders. These actions are
necessary because of Caribou's inability to fund operations due to the
collapse of metals prices and onerous zinc concentrate commercial terms.
On January 1, 2008, zinc and lead prices were US$1.08 per pound and
US$1.23 per pound respectively. On February 17, 2009, the price for zinc was
US$0.49 and lead was US$0.48 per pound. Blue Note's exploration properties,
including its gold asset Williams Brook, are not affected by this action as
they are not held by Caribou.
"We have done as much as we can do for the Caribou Mines for the time
being, " said Michael Judson, Blue Note's President and CEO. "They are great
assets with excellent upside potential as demonstrated by recently announced
exploration results. Their time will come again. Right now, we need a
strategic partner to assist in funding our care and maintenance program or we
need to sell it".
"Several parties have expressed an interest in the Caribou Mines and they
may have been waiting for us to go into a formal re-structuring process before
getting involved," Mr. Judson said. "As I have told our secured creditors, we
want to drive on and build the company".
"As announced on December 10, 2008, we have just made a significant gold
discovery near the Caribou infrastructure which is owned by Blue Note and is
unaffected by any re-structuring," Mr. Judson added. "Blue Note is a
management franchise. Having turned around a very challenging mine, we have
the operational pedigree to take on virtually any situation."
While under CCAA protection, management of Caribou will remain
responsible for the day-to-day operations of Caribou, under the supervision of
the Court appointed monitor, PricewaterhouseCoopers Inc., who will be
responsible for monitoring Caribou's ongoing operations, assisting management
with the development of a restructuring plan, reporting to the creditors and
the Court, and assisting management with respect to the restructuring of the
Blue Note also announces the appointment today of Messrs. Robert
Therriault and Lorne Woods as directors of the Corporation in replacement of
Messrs. Vic Alboini and Richard Pinkerton (the "Former Directors"), who both
resigned as directors of Blue Note yesterday. Blue Note thanks the Former
Directors for their dedication to the well-being of the Corporation.
Robert Therriault and Lorne Woods are respectively Chief Financial
Officer and Vice-President, Investor Relations of the Corporation. Michael
Judson, the Corporation's President and Chief Executive Officer, remains on
the Corporation's board of directors and was appointed as its new Chairman.
Jean Mayer, the Corporation's Vice-President, Legal & Corporate Affairs, also
remains on the Corporation's board of directors.
Finally, Blue Note announces that Northern Securities Inc. has resigned
as the Corporation's financial advisor.
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on the
TSX under the symbol BN.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Lorne Woods, Vice President, Investor
Relations, Blue Note Mining, (800) 937-3095, firstname.lastname@example.org;