TORONTO, Aug. 6 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), announced today that the Company has received an indicative financing term sheet for a US$30 million copper offtake facility from a major international bank, for the completion of the Luz del Cobre copper project in Sonora, Mexico. The copper offtake facility is a forward contract to deliver 9,984 tonnes of cathode copper over 48 months from the start of commercial production, in exchange for the Bank making a partial pre-payment of US$30m. There is no interest payable on the facility. The facility has price participation terms whereby the Company will receive an additional monthly cash payment for that quantity of copper when LME average prices exceed US$1.90 per pound. In addition, the Company has agreed to sell 150 tonnes of cathodes per month for 48 months at the lesser of the average LME price for that month and US$3.17 per pound. The project has a planned production level of approximately 600 tonnes per month.
The proposed facility is subject to normal due diligence review by the bank, the completion of definitive agreements and the approval of regulatory authorities. Conditions precedent to the closing include without limitation, the proposed equity financing of US$20 million by Gravity Ltd. which was approved by the shareholders on July 19, 2010, the settlement of the debt financing from a subsidiary of Glencore International AG, and a resolution of the outstanding debts to contractors and suppliers. For the due diligence review period, the Company has granted the bank an exclusivity until the earlier of the closing of the facility or December 31, 2010.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding to continue its development programmes.
Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture Exchange (symbol ZMR.H) and the Frankfurt Stock Exchanges, (symbol: ZMR). Common shares outstanding 117,608,747.
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.
For further information: For further information: Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto, ON, M5C 2B8, Canada, Fax: 416 367 3638, firstname.lastname@example.org, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: +1 52 662 222 0063, email@example.com; Frank van de Water, CFO and Secretary, Tel.: 416 869 0772, firstname.lastname@example.org