TORONTO, ONTARIO–(Marketwire - Sept. 2, 2010) - Lundin Mining Corporation (“Lundin Mining”) (TSX:LUN)(OMX:LUMI) today announced that it has executed an amended and restated credit agreement (the “Amended Credit Agreement”) that increases the amount of its revolving credit facility (the “Facility”) to US$300 million from $225 million, reduces its costs of borrowing and extends the term of the Facility to September 2013 from May 2012.
The amendments to the Facility were fully supported by the syndicate of lenders all of whom increased their individual commitment levels. The syndicate of lenders, which comprises Scotia Capital, the Sole Lead Arranger and Sole Book Runner, Bank of Montreal, WestLB AG- New York Branch, ING Bank N.V., Export Development Canada and Skandinaviska Enskilda Banken AB, collectively approved commitments to the Company well in excess of the $300 million requested.
Marie Inkster, CFO, commented, “Our objectives in negotiating an amendment to the facility were to achieve a moderate increase in the total credit available, to achieve pricing improvements, to extend to a full three year term and to allow for additional flexibility for future growth projects. These objectives have all been met with the Amended Credit Agreement and we appreciate the support of the syndicate of lenders.
“The increased size of the Facility provides additional financial flexibility while still allowing us to maintain a conservative balance sheet,” Ms Inkster said.
Except for a letter of credit in the amount of 80 million Swedish Kronor (approximately US$11million), no advances are currently outstanding under the Facility and Lundin Mining has approximately US$150 million of cash on hand.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves‐Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.