TORONTO, April 2, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV-RMN), (the "Company" or "Red Tiger") today announced that the Company's wholly-owned subsidiary, Minerales Libertad, S.A. de C.V. has entered into a loan agreement with Gerald Metals SA, whereby Gerald Metals will provide Minerales a loan in the principal amount of US$3,500,000 to complete the development of Minerales' Luz del Cobre mine. The Company will act as a guarantor of the Loan.
The principal features of the Loan are:
- The Loan bears interest at a rate of 15% per annum, payable in cash and matures on November 30, 2013. If the Loan is outstanding between November 30, 2012 and February 28, 2013 an additional 3% per annum interest will be payable in Red Tiger common shares. If the Loan continues past February 28, 2013, the additional interest rate will be 10% per annum, also payable common shares. The additional interest would be paid on a quarterly basis based on a share price equal to the market price on the last trading day for the applicable quarter, subject to an upper cap of 692,441 common shares.
- The Company will issue 325,000 common shares of Red Tiger to Gerald Metals in connection with the financing.
- No other shares or warrants are being issued as a bonus, finder's fee or commission to any other party in connection with the Loan.
The Luz del Cobre project has progressed to the stage where the first lift of crushed ore on the leach pad is being irrigated with water in order to put the contained copper into solution. The project is on schedule and the Company expects to deliver copper cathodes in the second half of April.
Red Tiger's shares are listed on the TSX Venture Exchange, (symbol: RMN). Common shares outstanding: 65,232,275
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information under applicable securities laws. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results. Specifically, this news release contains forward-looking information regarding the entering into of the Loan Agreement, the proposed use of the Loan and the ability of the Company and Minerales to fulfil their respective obligations under the Loan Agreement and the Guarantee Agreement, including with respect to the repayment of the Loan and any applicable interest thereon and with respect tot he timing of delivery of copper cathodes. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this news release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
For further information:
Dr. Thomas Utter
President and CEO
Tel.: +1 52662311 8839
Frank van de Water
CFO and Secretary
Tel.: 416 869 0772