Resource Capital Fund VI has completed a $50 million preconstruction loan to Avanti Mining. According to Avanti, the funds will be used for its Kitsault project based in British Columbia.
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 23, 2013) – Avanti Mining Inc. (TSX VENTURE:AVT)(PINKSHEETS:AVNMF) and its wholly owned subsidiary Avanti Kitsault Mine Ltd. (“Avanti” or the “Company”) announces that further to the Company’s press releases dated October 31, 2013, November 22, 2013, December 4, 2013 and December 19, 2013, the Company has closed its previously announced US$50 Million Preconstruction loan facility (the “Facility”) with Resource Capital Fund VI L.P. (“RCF”).
The purpose of the Facility is to provide the Company with working capital to commence preconstruction activities at the Kitsault project in anticipation of the project construction starting immediately upon receipt of the requisite permits. In addition, the Company used the proceeds of the Facility to repay all principal and interest owing to CEF (Capital Markets) Ltd. (“CEF”), approximately US$10 million, under the Company’s existing loan facility, with RCF, Resources Capital Fund IV L.P. and CEF dated July 2, 2013.
At closing, the Company drew down US$20 Million of the US$50 Million Facility, approximately US$10 Million was used to repay CEF. The remaining US$30 Million available under the Facility may be drawn upon according to the following schedule: US$10 million, after January 31, 2014 and prior to May 30, 2014; US$10 million, after March 31, 2014 and prior to May 30, 2014; and US$10 million, after April 30, 2014 and prior to May 30, 2014.
The terms of the Facility are further described in the Company’s Management Information Circular dated November 21, 2013 available on www.Sedar.com.
About Resource Capital Fund VI L.P.:
Resource Capital Fund VI L.P. (“RCF”) is a private equity fund with mandates to make investments exclusively in the mining sector across a diversified range of hard mineral commodities and geographic regions. RCF is managed by RCF Management L.L.C. which has its principal office in Denver and additional offices in Perth, New York (Long Island) and Toronto. RCF and Resource Capital Fund IV L.P. have provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and own approximately 38% of the Company’s issued and outstanding shares.
Avanti acquired the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia in 2008 and has been focused on its development ever since. It has spent the last five years in a comprehensive environmental assessment process with both the BC and Canadian governments, and with extensive consultation with the First Nations. It received the BC Environmental Assessment Certificate in March 2013 and the Company expects the Canadian Environmental Assessment Approval shortly. All the Federal review steps have been completed and the final decision by the Federal Minister of Environment is pending. In April 2013 the Company applied for permits to commence construction and the permitting process is well advanced. The Company is currently awaiting the permits to start construction.