PERTH, Australia, Nov. 4, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or the Company) (ASX: MBN) wishes to provide the following update.
Mirabela previously announced that one of its two customers, Votorantim
Metais Niquel S.A. (Votorantim), had provided notice to Mirabela advising that its concentrate sales
agreement with Mirabela (Sales Agreement) would terminate at the end of November 2013. Mirabela subsequently
announced that following the receipt of legal advice and discussions
with Votorantim, Votorantim confirmed to the Company in writing that:
its purported termination of the Sales Agreement was invalid; the Sales
Agreement remained on foot; it was committed to a minimum level of
concentrate deliveries for the months of October and November; and that
it intended to comply with its obligations under the Sales Agreement
until the end of 2014.
Mirabela has now received notice from 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 Sales Agreement.
The Company is taking legal advice on its position regarding a claimed
force majeure and in particular the status of a force majeure when
Votorantim closes their smelter at the end of November 2013 and cease
trying to remedy the cause of the claimed force majeure.
Mirabela is also currently assessing the impact of this situation on its
short term cash flow position and the status of the Company's US$50
million facility with Banco Bradesco S.A., which is secured by the
SOURCE: Mirabela Nickel Ltd.
For further information:
Mirabela Nickel Limited
Telephone: +61 8 9324 1177