Revett Mining Company, Inc. (NYSE MKT:RVM) (TSX:RVM) announced today that it has entered into a US $5.0 million loan agreement with a major equipment financing company. The agreement is collateralized by mobile and selected surface equipment at the Company’s wholly owned subsidiary, Troy Mine, Inc. and bears interest at 6.25% per annum. Existing capital equipment leases in the amount of US $356,740, now form part of the new 30 month loan agreement.
Advances from this loan agreement will be used to complete the ongoing I Bed development programs at the Troy Mine in northwest Montana. The Troy Mine is scheduled to resume limited commercial production in the fourth quarter of 2014; and, if development continues as planned, resume full planned production levels by mid-2015.
The company has mutually agreed to terminate, effective August 15, 2014, its existing US $20 million revolving credit facility with Societe Generale which was due to expire on December 31, 2014. The credit facility was not drawn upon. The company has no other debt, other than the debt incurred under the new loan agreement. As of August 26, 2014, the company had 39,153,989 common shares outstanding and 2,249,549 warrants to purchase common stock at an exercise price of US $1.00. These warrants expire on March 31, 2016.
John Shanahan, Revett’s President and CEO stated “This is another positive step in returning to full planned operating levels at our Troy Mine; and, to completing the permitting process for the Rock Creek project. This debt is manageable and our capital structure remains clean and intact. The opportunity to leverage the Company’s solid asset base demonstrates confidence in our future 12-year life-of-mine plan. This transaction was made possible by the excellent development work done to date by our employees at the Troy Mine and by our long and valued relationship with our equipment supplier.”
Revett Mining Company, through its subsidiaries, owns and operates the Troy Mine in Lincoln County, Montana and development-stage Rock Creek Project located in Sanders County, Montana, USA. The proven reserves at the Troy Mine and significant resources at the Rock Creek project form the basis of Revett’s plan to become a premier mid-tier base and precious metals producer.
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