| Thu 28 Oct 2010, 10:23 | | EPS - Eastern Platinum Limited - Eastplats Signs Mandate Letter for Us$100 |
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EPS
EPS
EPS - Eastern Platinum Limited - Eastplats Signs Mandate Letter for Us$100
Million Corporate Debt Facility
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768551038
Share Code AIM: ELR ISIN: CA2768551038
Share Code JSE: EPS ISIN: CA2768551038
October 28, 2010
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
EASTPLATS SIGNS MANDATE LETTER FOR
US$100 MILLION CORPORATE DEBT FACILITY
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or
the "Company") is pleased to announce the signing of a mandate letter with two
financial institutions to arrange and underwrite a US$100 million corporate debt
facility for the Eastplats group. The mandated lead arrangers are UniCredit Bank
AG, London Branch and The Standard Bank of South Africa Limited (together the
"MLAs").
The mandate letter has been signed on the basis of a term sheet which has been
agreed between the Company and the MLAs, each of which has satisfied their
initial internal credit approval processes to proceed with the financing. The
term sheet sets out detailed terms and conditions of the debt financing which
include:
- Underwritten by MLAs on a 50/50 basis and not subject to syndication
- Scheduled tenor of 6 years with an 18 month grace period
- Separate term loan and revolving loan facilities
- Initial interest rate of US LIBOR + 3.85% rising to US LIBOR + 4.15% for
the last three years of the loan. US one-month LIBOR currently sits at
approximately 0.26%.
- No hedging
The MLAs` commitments to arrange and underwrite the debt facilities are subject
to final due diligence, execution of acceptable documentation and obtaining
final internal credit approvals.
"This is an important step in the development of Eastplats. These funds will
enable us to commence our Phase 1 growth plan for our Eastern Limb projects that
will double our PGM production from our 2009 levels by the end of 2012. We are
delighted to be working with UniCredit and Standard Bank, with their extensive
experience and credentials in global mining finance." said Ian Rozier.
Canaccord Genuity Limited, London introduced and advised on the facility.
Total shares issued and outstanding: 683,179,000
For further information contact:
Investor Relations
Website: www.eastplats.com
Email: info@eastplats.com
Tel: 1 (604) 685-6851, Fax: 1 (604) 685-6493
Financial Adviser
Canaccord Genuity Limited, London
Ryan Cohen
Tel: 44 (0) 207 050 6500
NOMAD:
Ryan Gaffney
Canaccord Genuity Limited, London
Email: rgaffney@canaccordgenuity.com
Tel: +44 20 7050 6500
JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
Email: johanf@psgcapital.com
Tel: +27 21 887 9602
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Certain statements included herein constitute "forward-looking statements"
within the meaning of applicable Canadian securities legislation. These forward-
looking statements are based on certain assumptions by Eastplats and as such are
not a guarantee of future performance. Such statements include those about the
commencement of development of the Eastern Limb PGM projects, future production
levels and the closing of debt facilities. Actual results could differ
materially from those expressed or implied in such forward-looking statements
due to factors such as general economic and market conditions, increased costs
of production and a decline in metal prices. Eastplats is under no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable laws.
Date: 28/10/2010 10:23:02 Produced by the JSE SENS Department.
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