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Gold/Mining/Energy : first quantum minerals FM on TSE -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (334)	7/12/2001 12:43:49 PM
From: Stephen O	Read Replies (1) \| Respond to of 385

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.