Business & Finance
Business and Finance
Business and Finance
Fri, January 23, 2009 Nuinsco Resources Limited: Nuinsco Announces Restructuring of Bridge Loan
TORONTO, ONTARIO--(Marketwire - Jan. 23, 2009) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) ([ www.nuinsco.ca ]) today announced today that it has entered into an oral agreement with its bridge loan lenders to extend the maturity date on the Company's US$5 million bridge loan which was due and payable on December 15, 2008.
As part of the agreement to extend the maturity date to June 15, 2009, the Company will increase the existing security, which is restricted to the Company's shares of Victory Nickel Inc., to include the Cameron Lake gold deposit and its shares in Gold Hawk Resources Inc. The Lenders will be paid an extension fee of 10,000,000 common shares of the Company. The Company has the right to prepay the facility in whole or in part, at any time.
"We are pleased to have the support of our lenders in this trying time. This vote of confidence recognizes the value of the Company's underlying assets," said Alison Sutcliffe, Vice-President, Finance and CFO of Nuinsco. "This extension provides the time for the Company to find more appropriate means to repay the debt."
The terms of the extension of the bridge loan, including the issuance of common shares, are subject to documentation and regulatory approvals including approval of the Toronto Stock Exchange.
About Nuinsco Resources
Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey. In addition to its property holdings, Nuinsco owns approximately 15% of the outstanding common shares of Victory Nickel Inc. (TSX:NI), approximately 13% of the outstanding common shares of precious and base metals producer Gold Hawk Resources Inc. (TSX VENTURE:CGK) and an interest in the Corner Bay copper project owned by Campbell Resources Ltd. (TSX:CCH). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
