Orvana Minerals (ORV-T) Receives $7.5 Million Additiona Cash Payment for Copperwood
Dec 16, '14 - NR
Dollar amounts are in U.S. dollars unless stated otherwise.
Cash position now $15.9 millionTotal Debt Position $5.4 million
Orvana Minerals, announced today that it has received the additional $7.5 million cash payment, which includes interest of $0.5 million, from Highland Copper Company Inc.("Highland") relating to the sale of the Copperwood Project ("Copperwood") located in Michigan, U.S.A.
The base purchase price for Copperwood was $20 million. On closing of the sale to Highland on June 17, 2014, Orvana received a cash payment of $13.0 million and a secured promissory note in the amount of $7.0 million plus interest fully repayable no later thanDecember 15, 2014.
As previously disclosed, an additional consideration of up to $5.0 million may be paid by Highland in cash or shares of Highland, at Orvana's option, with $2.5 million payable no later than the fourth anniversary of the closing and $2.5 million payable following commercial production if the copper price reaches certain thresholds.
Furthermore, Orvana announced today that the availability period for its $6.5 million short-term loan facility from Fabulosa Mines Limited ended on December 15, 2014. The Company has not renewed the facility and has started the process to release the associated security.
With the final base purchase price payment from the Copperwood sale received, Orvana's current cash position is $15.9 million and its total debt stands at an estimated $5.4 million. The outstanding loans represent various short-term facilities associated with the Don Mario Mine in Bolivia.
About Orvana
Orvana Minerals is a multi-mine gold and copper producer. Orvana's operating assets consist of the producing EVBC gold-copper mines in northern Spain and the producing gold-copper-silver Don Mario Mine in Bolivia. Additional information is available at Orvana's website ( www.orvana.com).
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2014 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.
SOURCE Orvana Minerals Corp.
Michael Winship, President & Chief Executive Officer,
(416) 369-1629;
Daniella Dimitrov, Chief Financial Officer,
(416) 369-1629;
Joanne Jobin, Investor Relations
Officer, (416) 369-6275,
Email: jjobin@orvana.com |
