Business
Capstone Mining Discontinues Planned Offering of $300 million Senior Notes
(All amounts in US$ unless otherwise specified) VANCOUVER , Sept. 12, 2014 /CNW/ - C...
About this update from Capstone Copper Corp.
[{"type":"text","content":"\n\n\n(All amounts in US$ unless otherwise specified)\n\n\nVANCOUVER, Sept. 12, 2014 /CNW/ - Capstone Mining Corp. (\"Capstone\")\n (TSX: CS) today announced that due to general market conditions it is\n discontinuing its previously announced offering of $300 million Senior\n Notes (the \"Notes\") due in 2022.\n\n\n\"The Notes offering was intended to opportunistically repay borrowings\n under our existing credit facilities,\" said Darren Pylot, President and\n CEO of Capstone. \"While the $300 million we were looking to raise was\n available, the proposed interest rate exceeded what we were prepared to\n pay for that purpose.\"\n\n\n\"We currently have very low cost credit facilities, which when combined\n with our strong cash position, strong cash flow from operations and the\n undrawn portion of our existing credit facilities, give us the\n flexibility to only consider financing opportunities that are aligned\n with our cost of capital criteria,\" continued Mr. Pylot.\n\n\nThe new $300 million Senior Secured Revolving Credit Facility (\"SSRCF\"),\n which was intended to close concurrently with the notes, has also been\n discontinued.  Capstone's existing $200 million senior secured\n corporate revolving term facility and $200 million senior secured\n reducing revolving corporate credit facility, mature in October 2017\n and January 2016, respectively.  Both have an interest rate of US LIBOR\n plus 2.5% (adjustable in certain circumstances) and a standby fee of\n 0.56% on the undrawn balance of the facilities.\n\n\nAbout Capstone Mining Corp.\n\n\nCapstone Mining Corp. is a Canadian base metals mining company, focused\n on copper. We are committed to the responsible development of our\n assets and the environments in which we operate. Our three producing\n mines are the Pinto Valley copper mine located in Arizona, US, the\n Cozamin copper-silver mine in Zacatecas State, Mexico and the Minto\n copper mine in Yukon, Canada. In addition, Capstone has two copper\n development projects; the large scale 70% owned copper-iron Santo\n Domingo project in Region III, Chile, in partnership with Korea\n Resources Corporation, and the 100% owned copper-zinc Kutcho project in\n British Columbia, Canada, as well as exploration properties in Chile.\n Using our cash flow and strong balance sheet as a platform, Capstone's\n strategy i...