SPOKANE VALLEY, WA, Feb. 12 /CNW Telbec/ - Revett Minerals Inc. (RVM-TSX)
("Revett" or "the Company") is pleased to announce that today it has closed a
private placement of its shares as part of a restructuring program initiated
in December 2008. The private placement consisted of the sale of 10,000,000
equity units at a price of US$ 0.06 per unit for gross proceeds to the Company
of US$ 600,000. Each equity unit included one (1) common share of the Company,
and three-quarters (3/4) of a share purchase warrant exercisable at US$ 0.10
per full warrant. The next goal in the restructuring program is to streamline
the corporate structure of the company by facilitating the exchange of the
privately held Class B Shares of Revett Silver Company ("Revett Silver"), into
common shares of the Company. If this exchange is fully successful, the
Company will then hold 100% of Revett Silver.
Revett is also pleased to announce that it will continue operations at
its Troy Mine past the previously issued WARN Act notice period on a
month-to-month basis depending on the future prices of silver and copper.
Additional restructuring highlights include:
- Troy employees agreed to a salary reduction of 10% as well as some
benefit reductions. Other direct supply cost reductions have been
negotiated and are beginning to be realized; steel based consumables
are one of the primary direct costs at the mine.
- Corporate senior management salaries cut by 20% with same benefit
reductions as the mine employees. Other general and administration
costs have also been reduced.
- Agreed to roll 3rd and 4th quarter negative open price positions
related to our concentrate sales agreement into a US$ 4.3 million
interest bearing note due 30 June 2009.
The Company continues to be in a negative working capital position and we
continue to explore additional financing options.
Mr. John Shanahan, President and CEO, noted "We are very pleased with our
short term restructuring efforts. All of this would not be possible without
the wonderful contributions from our employees. Troy employees particularly
are to be commended for their efforts in improving productivity and reducing
President & CEO
Except for the statements of historical fact contained herein, the
information presented in this press release may contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements include but are not limited to those
with respect to our ability to streamline the corporate structure of the
Company, our ability to continue operations and our ability to obtain
additional financing. There is no guarantee that our efforts to streamline the
corporate structure of the Company will be successful in that neither the
Company nor Revett Silver has the right to cause the exchange of the Class B
Shares of Revett Silver for common shares of the Company or to cause the
exchange of warrants and options in Revett Silver for warrants and options in
the Company. Actual results and developments could be affected by our
challenging working capital position and our inability to continue to fund
operations, as well as those factors discussed in the section entitled "Risk
Factors" in the Form 10 filed with the Securities and Exchange Commission and
Canadian securities regulatory authorities. Although the Company has attempted
to identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.
For further information:
For further information: John Shanahan, President & CEO; Doug Ward, VP
Corporate Development, (509) 921-2294; www.revettminerals.com