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Message: Update on Financing for Centenario Copper Corporation Acquisition/Bought Deal
| March 20, 2009 |
| Quadra Mining Provides Update on Financing for Centenario Copper Corporation Acquisition and Increase to Bought Deal Financing |
| VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - March 20, 2009) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Quadra Mining Ltd. ("Quadra" or the "Company") (TSX:QUA) and Centenario Copper Corporation ("Centenario") (TSX:CCT) are pleased to announce receipt of a signed committment letter for $US37.5 million from West LB in connection with a syndicated US$50 million project loan facility to finance the development of Centenario's Franke Mine. Key facility details are; - Hedging requirements of 43 million pounds of copper at a minimum price of US$1.75 over 2009 and 2010 - Facility consists of an amortising US$40 million project finance facility and a US$10 million working capital both with a final maturity date in March 2014 - Quadra as sponsor and guarantor until Completion - Other terms and conditions customarily associated with project finance facilities including debt service, loan life and reserve life coverage ratios. Quadra and West LB are in discussions with the existing lending group and other lenders to complete the syndication. In the event the syndication does not complete, West LB will fund their $37.5 million and Quadra would fund the US$12.5 million difference until the syndication is completed. Quadra will continue to work on finalizing loan documentation as outlined in the Arrangement Agreement with Centenario. Completion of the Facility Documents is subject to Quadra and Centenario board approval. Based on this Quadra is pleased to announce that one of the critical conditions of the Arrangement Agreement has been met. In addition Quadra is pleased to announce that, due to the positive response from the market, the common share offering announced earlier today has been increased by an additional 2,200,000 common shares. The syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Raymond James Ltd., BMO Capital Markets, GMP Securities L.P. and Paradigm Capital Inc. will now purchase 16,200,000 common shares ("Common Shares") of the Company at a price of CDN$4.65 per Common Share (the "Offering Price") for gross proceeds of CDN$75,330,000. The Company will grant the Underwriters an over-allotment option, to purchase up to an additional 2,430,000 Common Shares (CDN$11,299,500), exercisable at the Offering Price, at any time up to 5:00 pm (Toronto time) on the day which is 30 days following the Closing Date. Paul Blythe, President and CEO of Quadra says, "At the time that the Arangement Agreement was agreed between Centenario and Quadra, we were contemplating a restructured project debt facility of $75 million. We have not been able, in the present debt market, to arrange a facility of this magnitude, but have, as noted above, a commitment for $37.5 million and are in negotiation for an overall facility of $50 million. The transaction at this debt level is still accretive to Quadra and enables us to continue our corporate growth strategy. The bank financing combined with the CDN$ 75 million bought deal equity financing earlier today enables Quadra to have in place the funding required for the completion and ramp up of the Centenario project, which will add 70 million of cathode copper production to Quadra." About Quadra: Quadra Mining Ltd. is a Vancouver based copper mining company. Quadra was launched as a public company in 2004 with a business plan of becoming a mid-tier base metals development and operating company. Quadra's strategic plan is to grow by acquiring assets, accessing and developing attractive projects held by exploration focused companies and seeking merger opportunities within the small to mid-tier sector. The plan was launched with the acquisition and restart of the Robinson Mine ("Robinson") in Nevada in 2004 and has continued with the purchase and construction of its second producing asset, the Carlota Mine ("Carlota") in Arizona. Robinson produced a record 159.7 million pounds of copper and 137,628 ounces of gold in concentrate during 2008. Quadra also owns Sierra Gorda, an advanced and potentially world class development copper project in Region II, Chile. About Centenario The Company was founded in 2004 with the goal of becoming a mid-tier copper producer and consolidator, active in regions of low sovereign risk. Centenario currently operates exclusively in Regions II and III of Chile. Its principal asset, the Franke Property, located in Region II, is currently in construction and is projected to produce 30,000 tonnes of cathode copper per year, starting in early 2009. The Company believes that the contiguous Pelusa Property is highly prospective for developing additional leachable copper resources for processing at the Franke plant. The Pan de Azucar Property, located 45 km. from the Franke Property, is currently being evaluated as a possible nucleus for a second property cluster. The Company continues to evaluate other "in region" clustering opportunities which could reinforce its existing property portfolio. |
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