Anvil Range Arranges Short Term Financing to Enable
Operations to Resume at Faro
TORONTO, ONTARIO--Anvil Range announces that it has arranged for
sufficient short term working capital funding from Cominco Ltd.
and the Glencore Group to enable it to resume production of lead
and zinc concentrates at its Faro operations for the period from
November 20, 1997 to March, 1998.
The funding is comprised of two parts. Cominco has advanced $5
million which becomes callable on demand on or after March 15,
1998. This loan is secured in the same manner as the existing $15
million loan which was arranged on August 6, 1997 and bears the
same 8.5 percent interest rate. The new $5 million loan has a
maturity value of $7 million and the additional $2 million is
subject to the repayment terms of the existing loan.
The second part of the funding is pursuant to an agreement with
the Glencore Group which will become the exclusive buyer of the
Company's zinc and lead concentrates for the period ending March,
1998. If the mine continues in production beyond March, 1998
Glencore has an option to continue this arrangement for the
balance of the year. As part of this agreement, which may
continue for the life of the Grum mine, Glencore will buy the
concentrates immediately after production. An advance payment
will be made to Anvil Range when concentrates are delivered to the
port of Skagway.
These arrangements will provide the Company with its immediate
working capital needs. The Company's technical consultants
Strathcona Mineral Services Limited are examining possible ways to
lower the Company's costs and improve the profitability of its
operations. When these studies are complete, the Company will
re-assess its requirements for additional permanent financing.
As no shareholder approval of the transaction is required and as
it is essential that the Company have immediate access to the
proceeds of the loan to continue operations at the Company's Faro
Mine, 21 days prior notice of the closing of the transaction is
not being provided as contemplated in Ontario Securities
Commission Policy 9.1. |
