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it does have itr's implications..... Enjoy
TORONTO, ONTARIO--(Marketwire - May 5, 2008) - ECU Silver Mining (TSX:ECU) ("ECU Silver" or "the Company") is pleased to announce through a letter of intent that it has arranged a new $10 million debt facility with IIG Capital LLC ("IIG") based in New York. The debt facility will have a drawdown feature which will enable the Company to draw up to $10 million subject to certain terms and based on its cash requirements. The debt facility will have a term of 29 months commencing June, 2008 and will bear an annual interest at a rate equal to the one-month London Interbank Offered Rate ("LIBOR") plus 6% but not less than 11%. There will be no principal repayments required until November 30, 2009 following which principal will be repayable in equal monthly installments for 12 months. The facility will be secured by a first mortgage covering the current mining properties of the Company's Mexican subsidiaries. A structuring fee of 1.5% is payable to IIG. This strategic debt facility offers ECU Silver a timely and non-dilutive way to ensure it has sufficient liquidity to advance its exploration and development programs. The Company's objectives are to complete sufficient work to convert a meaningful portion of its potential into a mineral resource category with a view to providing an update to its N.I. 43-101 mineral resource report later in the year. Concurrent with this new facility, the Company has also arranged for an extension of its existing loan with IIG. Commencement of the existing monthly repayment schedule will be deferred by 6 months from May 29, 2009 to November 30, 2009. The interest on the restructured loan will be calculated at one-month LIBOR plus 6% but not less than 11%. For further information please visit www.ecu.ca. To receive Company press releases, please email chichi@chfir.com and mention "ECU News" on the subject line. Forward-Looking Statements Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement. FOR FURTHER INFORMATION PLEASE CONTACT: CHF Investor Relations Chris Haldane Account Manager (416) 868-1079 ext. 237 |
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