TORONTO, July 9, 2012 /CNW/ - Liberty Mines Inc. today announced that it received approval at its annual meeting of shareholders to consolidate its credit facilities with Jien International Investment Limited (JIIL), and extend the terms to a new maturity date of June 30, 2017.
Following shareholder approval and subject to the execution of a new loan agreement with JIIL in due course, the consolidated credit facility will have an outstanding principal amount of: (i) $48,914,849 and (ii) US$19,348,828 plus accrued interest to date. The credit facility bears interest at 10% per annum, which is secured against the assets of the Company, and no interest will be payable until June 30, 2014. Related to the new maturity date and consolidated terms, JIIL has also agreed to expand the available credit facility by an additional $10,000,000 as well as continues to provide an available facility to address the preferred shares if redeemed prior to June 30, 2013.
"Consolidating the credit facilities and extending the terms out five years was based on Liberty's five year business plan," said Chris Stewart, President & CEO of Liberty Mines. "This change allows us the opportunity to ramp up our production in Timmins so that we can generate some solid financial results to start repaying our debt. With the continued support of our major shareholder Jilin Jien, we have been able to execute our turnaround strategy for Liberty Mines and we are now focused on moving ahead with our plans for the Timmins operations."
At the annual meeting, Liberty shareholders also approved the election of Mr. Shu Wu, Mr. John Pinsent, Dr. Tao Li, Dr. Shu Zhang, Mr. Kim Oishi, Mr. Chris Stewart and Mr. James Xiang as directors of the Company. The directors bring a combination of mining, capital markets and public company experience.
Liberty shareholders also approved the nomination of BDO Dunwoody as the auditors for the Company.
Liberty has filed the full voting results of its annual meeting on SEDAR.
About Liberty Mines Inc.
Liberty Mines Inc. is a mid-tier producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada. It owns and operates the only nickel concentrator in the Shaw Dome, a prospective nickel belt region near Timmins, Ontario. With a new management team in place, Liberty is focused on growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.
For further information:
Chris Stewart, President & CEO
416 815 0700 ext. 243