|July 30, 2008|
Crowflight Finalizes Metals Price Protection Requirements for Debt Facility
|CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) today announced that it has begun drawing down on the $45 million Final Tranche Loan of its debt facility being used to fund development of the Bucko Lake Nickel Project near Wabowden, Manitoba. |
Of the $45 million, $15.3 million will be used to pay the $15 million bridge facility plus interest, with the remainder to be applied to completing construction and ramp up of the Bucko Lake Mine. This credit facility requires a price protection strategy be put in place to limit the risk against falling nickel prices. On July 28, 2008, the Company entered into a forward sales contract agreements with the lender to implement a risk management strategy to manage commodity price exposure on nickel sales. Forward sale contracts were entered into from the fourth quarter of 2008 to the fourth quarter of 2012 for a total of 20.5 million pounds of nickel at a price of $8.49/pound.
Details are as follows:
• 2008 -- 0.40 million pounds Nickel
• 2009 -- 3.88 million pounds Nickel
• 2010 -- 5.73 million pounds Nickel
• 2011 -- 5.54 million pounds Nickel
• 2012 -- 4.94 million pounds Nickel
This represents approximately 21% of the current NI 43-101 compliant proven and probable reserve base of 97.2 million pounds of contained nickel at Bucko. Further increases in the mineable reserve base will result in lower overall hedge percentages.
The forward sales contracts are considered derivative financial instruments and are used for risk management purposes and not for generating trading profits.
Crowflight Minerals -- Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX-V: CML) is a Canadian junior mining exploration and development company focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin. The Company currently owns and/or has under option approximately 800 square kilometres of exploration and development properties in Manitoba and Ontario.
Crowflight's priority is to bring the fully-funded Bucko Lake Nickel Project located near Wabowden, Manitoba into production by the third quarter of 2008.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will". There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Further information is available on the Company's website at www.crowflight.com or contact:
President and CEO
Tel: (416) 861-2964
Manager, Investor and Public Relations
Tel: (416) 861-5803
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