| Wed 16 Nov 2011, 13:00 | | FMC - Forbes & Manhattan Coal Corp. - Forbes Coal Secures ZAR230 million |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp. - Forbes Coal Secures ZAR230 million
(approximately C$30 million) loan facility to fund the company`s expansion
Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
TORONTO, ONTARIO - November 16, 2011: Forbes & Manhattan Coal Corp.
(TSX/JSE: FMC) ("Forbes Coal" or the "Company"), through its subsidiary
Slater Coal Proprietary Limited, has secured a ZAR230 million
(approximately C$30 million) loan facility from Investec Limited
("Investec"), an international investment and private banking group. Funds
from the loan facility will be used to further the Company`s expansion
plans.
"Forbes Coal`s new loan facility, combined with current working capital,
puts the Company in an even better financial position. We are now able to
structure future growth in a way that is non-dilutive to shareholders,"
said Stephan Theron, President and CEO of Forbes Coal. "Our goal continues
to be to grow the Company both organically and through acquisitions,
becoming a mid-tier coal producer within the next few years."
The loan facility consists of a five year senior secured amortising term
loan facility of up to ZAR200 million (approximately C$25 million) and a
revolving loan facility of up to ZAR30 million (approximately C$5 million).
Both facilities are flexible in terms of drawdowns and repayments.
Forbes Coal has cash and cash equivalents of C$24.2 million as at August
31, 2011 and cumulative EBITDA of C$12.7 million for the six months ended
August 31, 2011.
About Investec
Investec Limited (JSE: INL) is an international investment and private
banking group. The Group provides corporate and investment banking, private
banking, securities trading, asset management, property trading and
management and trade finance services.
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a
majority interest in two operating mines through its 76.75% interest in
Slater Coal (Pty) Ltd., a South African company ("Slater Coal") which has a
70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100%
interest in the Magdalena bituminous mine and the Aviemore anthracite mine
in South Africa (collectively, "the Slater Properties"). The mines have a
substantial combined resource of coal and each mine has a projected life
span in excess of 20 years. Forbes Coal is in the process of increasing
production at both mines and looks to triple production from 2010 levels in
the next three years using existing infrastructure and capacity. The
Company has in-place transportation infrastructure allowing its coal to
reach both export corridors and the growing domestic coal market. Forbes
Coal has a strong balance sheet and an experienced coal-focused management
team.
Please refer to the Company`s NI 43-101 compliant technical report on the
Slater Coal Properties dated March 1, 2011 entitled "Technical Report on
Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa",
available on the SEDAR profile of the Company at www.sedar.com. Additional
information is available at www.forbescoal.com.
Cautionary Note Regarding Forward-Looking Information This press release
contains "forwardlooking information" within the meaning of applicable
Canadian securities legislation. Forwardlooking information includes, but
is not limited to, statements with respect to the loan facility anticipated
production results at the Slater Properties, future financial or operating
performance of the Company and its projects, statements regarding
transportation, infrastructure and the prospects for the business of the
Company andrequirements for additional capital.. Generally, forwardlooking
information can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including but not
limited to: general business, economic, competitive, foreign operations,
political and social uncertainties; a history of operating losses; delay or
failure to receive board or regulatory approvals; timing and availability
of external financing on acceptable terms; not realizing on the potential
benefits of the proposed transaction; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future
prices of mineral products; failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes and other risks of the
mining industry; and, delays in obtaining governmental approvals or
required financing or in the completion of activities. Although the Company
has attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking information,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forwardlooking information. The Company
does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
Email: ssrubiski@forbescoal.com
Sponsor: Sasfin Capital, a division of Sasfin Bank Limited
Date: 16/11/2011 13:00:01 Produced by the JSE SENS Department.
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