Woulfe Mining Funding on Track
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/07/12 -- Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX VENTURE: WOF)(OTCQX: WFEMF)(FRANKFURT: OZ4) is pleased to announce that it is on track to bring the Sangdong mine into production in 2013. As reported the Company suffered delays in delivering the feasibility study by moving metallurgical test work to China. This delay in completing the feasibility resulted in a late start for International Metalworking Companies B.V. ("IMC") to work through the due diligence. The IMC definitive agreements require 60 days from feasibility report to complete due diligence, followed by 60 days to finalize and funds to flow. The delays mean that the CND$35 million equity investment could come into the Sangdong Mining Corporation Korea as late as the end of August 2012.
The Company is working to make up the time lost by changing the design of the mine access, expanding the existing access to 5x5 will save money and time to get to production. The access tunnel will begin in early July 2013. At the same time we will purchase the land from the county which will enable the construction to commence.
As announced on June 6, 2012, Woulfe has arranged a brokered offering of CDN$20million in principal amount of convertible unsecured senior debentures with a syndicate of agents led by Euro Pacific Canada Inc. as sole book-runner and co-led with Byron Capital Markets Ltd.
Brian Wesson, CEO and President of Woulfe Mining said, "This funding was required to keep the project on track for production in 2013 and allow the time for the strategic and debt funding in the subsidiary to be concluded. The convertible debt strengthens the treasury and allows the Company to move forward on Sangdong maintaining the momentum and getting to cash flow as quick as possible which is the most important objective of the Company. We have provision to buy back 30% of the notes and once the company is in production with strong cash flow we could buy back stock. As funds become available to secure against the volatile world and move to production we remove a huge amount of risk for our shareholders."
The Company is in advanced discussions with international and domestic Korean banks for a project debt facility of US$80 to US$110 million dollars. Indicative term sheets have been received for debt suggesting very competitive interest rates. Indications are that the banks are comfortable with the Sangdong project and it is expected that the debt package will be closed about the same time as the strategic deal is finalised. Woulfe anticipates banks moving to complete due diligence in the next 60 days.
On Behalf of the Board of Directors
Brian Wesson (FAusIMM), President, CEO and Director
About Woulfe Mining Corp.
In partnership with IMC, Woulfe is developing the Sangdong tungsten-molybdenum mine which was historically, one of the largest tungsten mines in the world and one of the few long life, high grade tungsten deposits outside of China. The Company has assembled a highly skilled, in-country, bilingual technical team and a board of directors with an outstanding track record of success.
Woulfe Mining Corp. is a TSX-V listed company.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: commodity price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; failure to complete the strategic arrangement described in this release, including because of the failure to satisfy the conditions to closing of the transaction, risks of sovereign investment; currency fluctuations; speculative nature of mineral exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the appropriate regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Nicola Street Capital
Nick Smith
Mobile phone +1 (415) 595-0865
nsmith@nicolastreetcapital.com
Woulfe Mining Corp.
Administration Office
+1 604 684 6264
+1 604 684 6242 (FAX)
info@woulfe.com.au
www.woulfemining.com