Seafield Resources Announces Initial Drawdown of $3.3M from Loan Facility
TORONTO, ONTARIO -- (Marketwire) -- 03/01/13 -- Seafield Resources Ltd. ("Seafield" or "the Company") (TSX VENTURE: SFF) and RMB Australia Holdings Limited ("RMB") are pleased to announce Seafield has made an initial drawdown of $3.3 million from the $16.5 million loan facility (the "Facility") with RMB. The Facility was arranged by RMB Resources Inc., a resources financing business within the FirstRand Group of South Africa (FSR: SJ). Details of the facility were announced in the Company's press release dated February 21, 2013.
The proceeds of the first drawdown will be used by Seafield for funding of exploration and project development at the Miraflores Deposit and general working capital purposes. The terms of the facility is for 3 years at an interest rate of LIBOR plus 7.0% per annum, payable quarterly.
As per the terms of the Facility, Seafield has issued 33,000,000 warrants to RMB to purchase common shares of the Company at a price of C$0.10 per common share until March 1, 2016. Assuming the exercise of all of the warrants, RMB would hold an aggregate of 33,000,000 common shares of the Company, representing approximately 14.7% of the issued and outstanding common shares (based on 190,804,171 common shares as currently issued and outstanding, and assuming no other exercise of securities convertible for common shares).
About Seafield:
Seafield Resources Ltd. (TSX VENTURE: SFF) is a mineral exploration company currently focused on advancing its Miraflores Gold Deposit towards feasibility level. Seafield's 6,757-hectare Quinchia Gold Project is located in the Department of Risaralda of Colombia. SRK Consulting Inc's (Denver) Preliminary Economic Assessment on the Miraflores Deposit indicates robust economics with a pre-tax internal rate of return of 50% and a pre-tax net present value (8%) of $249M (see corporate PEA presentation at http://bit.ly/MFeL7q). Miraflores currently has a NI 43-101 compliant Measured and Indicated resource estimate of 1,925,542 ounces gold at 0.8 g/t Au (77Mt at a cut-off of 0.3 g/t Au) and an Inferred resource estimate of 103,043 ounces gold at 0.6 g/t Au (5.5Mt at a cut-off of 0.3 g/t Au). Additionally, the Company has a NI 43-101 compliant resource estimate for its Dosquebradas Deposit, also part of the Quinchia Gold Project, with an Inferred resource estimate totalling 920,772 ounces gold at 0.5 g/t Au (57Mt at a cut-off of 0.3 g/t Au). Seafield Resources Ltd. trades its shares on the Toronto Venture Exchange (TSX-V) under the symbol SFF and in the United States using CUSIP 81173R101. For more details on the Company, please visit www.sffresources.com.
About RMB Resources Inc:
RMB Resources is the resource financing division of the FirstRand Group, which is listed on the Johannesburg Stock Exchange (FSR: SJ) and is one of South Africa's largest financial institutions . RMB specializes in providing equity- and debt-financing solutions for small to mid-tier resource companies globally. RMB Resources provides debt funding through conventional project financing, commodity pre-paid forward financing as well as senior, subordinated, standby and bridge financing. Staffed with experienced mining executives, RMB Resources operates from its offices in Sydney, Melbourne, London, Johannesburg, Denver and New York.
Forward-Looking Statement
This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.
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:
Seafield Resources Ltd.
David MacMillan
Investor Relations
(416) 361-3434 ext. 202
dmacmillan@sffresources.com
www.sffresources.com
RMB Resources Inc.
Alvaro Belevan
Managing Director
646 722 4151
alvaro.belevan@rmbresources.com