|Thu Sep 19, 2013|
Aurcana Closes $50 million Loan Facility
|Vancouver, BC, September 19, 2013 - Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF) is pleased to announce that it has executed definitive agreements with MF2 Investment Holding Company (Cayman) Limited, part of Orion Mine Finance Fund I ("Orion Mine Finance"), for a loan facility in the principal amount of US$50,000,000 (the "Loan") and an Offtake Agreement (the "Offtake Agreement") for silver and gold (the "Material") produced at the Company's Shafter mine. A total of approximately US$13 million from the Loan proceeds will be used by the Company to complete the construction and upgrade work for Shafter mine and the balance of the Loan will be used to repay certain indebtedness and for otherwise advancing the La Negra and Shafter mines. |
Mr. Lenic Rodriguez, the Company's President & CEO states: "The closing of the US$50 million non-dilutive Loan facility is an important achievement for Aurcana and provides the Company with a significant cash infusion during challenging market conditions. The Loan will be sufficient to complete the Shafter ramp up and increase efficiencies at La Negra and provides flexibility in pursuing our growth objectives. This transaction demonstrates the confidence shown in Aurcana's mines, management and leadership by one of the leading mining sector focused investment funds. We look forward to a long term relationship with Orion Mine Finance while we continue to work on our goal to become an emerging senior silver producer."
The Loan facility strengthens Aurcana's balance sheet and provides significant financial flexibility to complete its corporate growth objectives.
In connection with the Loan, the Company will pay to Pashleth Investment Ltd., an arm's length party to the Company, a finder's fee of US$250,000.
About Aurcana Corporation
Aurcana Corporation is a primary silver producing company with two mines: the La Negra Mine in Mexico and the Shafter Mine in Texas, US. The Company is in a position to grow organically from its existing mines in its pursuit to become an emerging senior silver producer. Aurcana continues to focus on its future growth.
About Orion Mine Finance
Orion Mine Finance provides flexible financing solutions to mining companies in the precious and base metals sectors for the purposes of developing, constructing, expanding or acquiring mining projects. Orion Mine Finance has approximately $1.14 billion under management, dedicated exclusively to the mine finance business. Orion Mine Finance Fund I, formerly known as the RK Mine Finance Fund II LP, was launched in 2012 and is one of the world's leading mining sector-focused investment funds.
Orion Mine Finance operates across the global metals industry with offices in New York, Denver, Sydney and Bermuda. Investors in Orion Mine Finance include college endowments, foundations, family offices, pensions and other institutional investors. For additional information about Orion Mine Finance, please visit www.orionminefinance.com.
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
Lenic Rodriguez, President & CEO
For further information contact:
Lenic Rodriguez, President & CEO
Catalin Chiloflischi, Corporate Communications Director
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Neither the 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.
This news release contains certain forward-looking statements, including statements regarding the anticipated use of proceeds of the debt financing, future plans and objectives of the Company and the business and anticipated financial performance of the Company.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, the ability of suppliers to provide equipment, the availability of skilled labour, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf, except as required pursuant to applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements.
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