JAG - TSX/NYSE
BELO HORIZONTE, Brazil, Jan. 25, 2013 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE) today announced that it has made an initial draw down of $5 million on
its previously announced $30 million standby credit facility (the
"Facility") with Renvest Mercantile Bancorp Inc. through its Global
Resource Fund (the "Lender"). Consistent with the terms of the
Facility, the Lender received an upfront fee and draw down fee together
comprising 570,919 shares of Jaguar's common stock and $150,000 in
The Lender has advanced the initial draw down as the process to complete
registration of the remaining security under the Facility continues to
be completed. The remaining $25 million under the Facility will be
available to be drawn down by the Company once certain of the remaining
security has been registered.
Jaguar intends to use the proceeds from the initial drawdown and any
subsequent drawdowns from the Facility for working capital related to
its Turmalina, Paciência or Caeté mining projects in Brazil.
Regarding the initial draw down, Jaguar's President and CEO David
Petroff said, "We are pleased to have the financial flexibility this
draw down provides while we continue the implementation of our
operational improvements. As we execute as planned, our preference
will be to rely on internally generated funds to the greatest extent
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and is developing the
Gurupi Project in Northern Brazil in the state of Maranhão. The
Company is actively exploring and developing additional mineral
resources at its approximate 220,000-hectare land base in Brazil.
Additional information is available on the Company's website at: www.jaguarmining.com.
About Renvest Mercantile Bancorp
Renvest Mercantile Bancorp, through its Cayman-based Global Resource
Fund, provides financing for companies and projects in the natural
resource sector. Loans are for terms of up to 24 months, typically in
the form of a senior secured debenture and often as a convertible
SOURCE: Jaguar Mining Inc.
For further information:
Vice President, Investor Relations
Valéria Rezende DioDato
Director of Communication