05/03/2009 - 14:13

Mirabela Nickel casts doubt over future

05/03/2009 - 14:13

Bookmark

Save articles for future reference.

Mirabela Nickel says that uncertainty over a planned $US133 million equity capital raising has cast significant doubt over its ability to continue operating.

Mirabela Nickel says that uncertainty over a planned $US133 million equity capital raising has cast significant doubt over its ability to continue operating.

In its interim report released today, the company elaborated on its financial position following yesterday's news that it had secured a $US150 million facility.

Mirabela said yesterday it had secured the facility with a consortium of lenders under the proviso that it raise $US133 million in equity.

However the capital raising amount would be reduced to $US95 million if another lender came onboard, contributing a further $US40 million to the facility.

Altogether, the company will have at least $US290 million in funds to be applied towards the completion of its Santa Rita nickel project in Brazil.

In its report, Mirabela said that it had entered into an agreement with a Toronto-based stockbroker to manage the raising, which is not underwritten.

"... there exists material uncertainty as to whether the Company will raise sufficient funds to meet the condition precedent to the successful completion of the senior secured loan facility and therefore the Company's ability to settle existing obligations and complete the construction and commissioning of the Santa Rita project," it said.

The company added there was "significant doubt" about Mirabela's ability to continue as a going concern.

At the end of the reporting period, Mirabela had a net working capital deficit of $55.43 million and obligations amounting to $180.8 million.

Additionally, the company has interest bearing liabilities relating to its offtake loan of $121 million.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options