YUKON – From SHERWOOD COPPER of Vancouver comes news that it has received credit approval for a $85-million senior and subordinated debt package to complete the construction of the high-grade Minto copper-gold mine and has begun drawing on the subordinated facility. The financing includes a $65-million project loan facility and a $20-million subordinated debt facility.
In conjunction with the debt arrangements, Sherwood has also entered into forward sales contracts for 90.0 million lb of copper, 42,202 oz of gold and 467,697 oz of silver production, as well as an off-take agreement for the sale of concentrates. The copper price in the contract is US$3.17/lb in August 2007 and will gradually decline to US$2.00/lb in April 2011. Gold and silver prices are fixed for the term at US$636.25/oz and US$11.51/oz, respectively. These contracts cover approximately 65% of the projected output from the Minto project.
The Minto mine is now approximately one-third built and scheduled to commence production in the second quarter of 2007, producing an average of 41 million lb of copper and 17,295 oz of gold per year. (See CMJ Net News, Aug. 30, 2006.)
The fine print of both the loan agreement and forward sales contract may be read at www.SherwoodCopper.com.