Northern Vertex secures US$9M equipment finance facility from Cat Financial
VANCOUVER, May 2, 2017 /CNW/ - Northern Vertex Mining Corp. (TSX.V:NEE) (the "Company" or "Northern Vertex") is pleased to announce the execution of a commitment letter and term sheet with Caterpillar Financial Services Corporation ("Cat Financial"), pursuant to which Cat Financial has agreed in principle to fund the Company's purchase of certain key equipment including power generators and mobile equipment manufactured by Caterpillar Inc. and the crushing plant for use at the Company's Moss Mine gold silver project.
Kenneth Berry, the Company's President and CEO, states: The Cat Financial US$9M Equipment Finance Facility combined with the previously announced Sprott Lending Facility of US$20M will strengthen the Company's ability to fulfill its mandate of producing gold in Q4 2017. Construction activities at the Company's Moss Gold Mine continue under the guidance of M3 Engineering Technology Corp., Golder Associates Inc., and N.A. Degerstrom, Inc.
The material terms and conditions of the Cat Financial equipment finance facility (the "Equipment Finance Facility") include:
- Financing between 70% - 80% of the equipment purchase price to maximum amount of US$9,000,000 of equipment purchases;
- Quarterly payments over a four year lease period;
- The right to buy the equipment at the end of the lease period for nominal consideration;
- Security over the acquired assets in favour of Cat Financial and a guarantee from the Company; and
- Payment of interest and arrangement and commitment fees to Cat Financial.
Closing of the Equipment Finance Facility is subject to customary conditions for such financings including the execution of a Master Lease Agreement and applicable security documentation, equipment delivery and satisfactory completion of conditions precedent.
About Northern Vertex
Northern Vertex Mining Corp. is an exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Kenneth Berry "
President & CEO
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.
Forward-Looking Statements: This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the execution of a Master Lease Agreement and related documents with Cat Financial, drawdowns under the Equipment Finance Facility to fund equipment purchases, timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Northern Vertex Mining Corp.
For further information, please visit www.northernvertex.com or contact Investor Relations at: 604-601-3656 or at 1-855-633-8798.
Share this article