First Quantum Refinances Bwana Mkubwa Debt - Expansion Of
Operations To Support Direct Oxide Feed
VANCOUVER, BRITISH COLUMBIA--First Quantum Minerals Ltd. (TSE
Symbol "FM", LSE Symbol "FQM", OTC Symbol "FQVLF") is pleased to
announce the draw down of a US $14.25 million term debt facility
for its wholly owned subsidiary Bwana Mkubwa Mining Limited
("Bwana Mkubwa") provided by KBC Bank N.V., Global Trade Finance
Group ("KBC"). The debt facility has been used to repay
outstanding loans of Bwana Mkubwa with the balance to be utilized
to expand the existing Bwana Mkubwa plant and to exploit and
develop the nearby Lonshi copper deposit located within the
Democratic Republic of Congo. The KBC facility is repayable in 18
monthly installments commencing in July, 2001 and has an interest
rate of LIBOR + 2.5% per year which is substantially lower then
the aggregate rate paid on the debts repaid. The KBC facility
will be secured by the assets of Bwana Mkubwa Mining Limited.
"The restructuring of Bwana Mkubwa's debt will result in
considerable interest savings for First Quantum and provide the
initial capital necessary to transform the mine from a tailings
re-treatment facility to a direct feed oxide operation. The
Lonshi copper deposit will extend the life of Bwana Mkubwa for
several years and result in an increase in annual copper
production to potentially 30,000 tonnes of LME Grade "A" copper
cathode per year. Finalizing this facility with KBC is a strong
endorsement of the continued strengthening of the Zambian copper
industry" commented Philip Pascall, Chairman, First Quantum
Minerals.
KBC have received strong interest from a number of international
banks active in the region to join the transaction. KBC have
agreed that approximately 1/3rd of the transaction will be placed
with one of the interested parties.
Lonshi Copper Deposit
The Lonshi copper deposit is located in the Democratic Republic of
Congo, approximately 35 kilometres east of the Bwana Mkubwa SX-EW
facility in Zambia. Work completed to date has established an
oxide copper resource of approximately one million tonnes grading
6% copper or 60,000 tonnes of contained copper. Work is
continuing in an effort to increase this resource to 250,000
tonnes of contained copper. Agreements are in place in both the
Democratic Republic of Congo and Zambia which will allow for the
processing of the Lonshi ore at Bwana Mkubwa. A scoping study is
currently underway on the project and further information will be
released upon completion of the study.
Certain of the information contained in this news release
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including but not limited to those
with respect to the prices of gold, copper and sulphuric acid,
estimated future production, estimated costs of future production,
the Company's hedging policy and permitting time lines, involve
known and unknown risks, uncertainties, and other factors which
may cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
the actual prices of copper, gold and sulphuric acid, the factual
results of current exploration, development and mining activities,
changes in project parameters as plans continue to be evaluated,
as well as those factors disclosed in the Company's documents
filed from time to time with the British Columbia Securities
Commission and the United States Securities and Exchange
Commission. |
