First Quantum Minerals Provides an Update on Its Financing Plan

15.04.2014  |  Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 15, 2014) - First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) is pleased to announce that it has signed and drawn down on its $2.5 billion Five-Year Term Loan and Revolving Facility (the "$2.5 billion Facility").

The $2.5 billion Facility comprises a $1 billion Term Loan Facility available to draw until April 8, 2016 with a margin of 2.75% and a $1.5 billion Revolving Credit Facility available to draw until March 8, 2019 also with a margin of 2.75% per annum. All outstanding loans on these facilities must be repaid no later than April 8, 2019. The initial Mandated Lead Arrangers and Underwriters were Standard Chartered Bank and BNP Paribas. The $2.5 billion Facility is being syndicated, which is expected to close in May. The $2.5 billion Bridge Facility with Standard Chartered Bank arranged for the Inmet Mining Corp. ("Inmet") acquisition, which was completed in April 2013, has been cancelled.

The signing of the $2.5 billion Facility is a significant milestone in the Company's financial plan following the completion of the acquisition of Inmet. Other financing initiatives include the following:

• Exchange Offer - On February 27, 2014 the Company completed an exchange offer (the "Exchange Offer") whereby the 8.75% Senior Notes due 2020 and 7.50% Senior Notes due 2021 issued by Inmet prior to the acquisition (the "Inmet Notes") were exchanged for 6.75% Senior Notes due 2020 and 7.00% Senior Notes due 2021, issued by First Quantum (together, the "FQM New Notes").
• Consent Solicitation - On February 12, 2014 the Company completed a consent solicitation to make certain amendments to the $350 million indenture dated October 10, 2012 (the "Indenture") governing the Company's outstanding 7.25% Senior Notes due 2019 (the "FQM Notes"). The amendments, among other things, aligned the terms of the FQM Notes with the FQM New Notes.
• Kansanshi $1 billion Facility - On April 3, 2014 the Company cancelled its $1 billion Facility for Kansanshi Mining PLC, the owner of the Kansanshi copper and gold mine in Zambia. This $1 billion Facility was replaced by an unsecured $350 million Facility from Standard Chartered Bank, which became available for drawing on April 3, 2014.
• Kevitsa $250 million Facility - On February 11, 2014 the Company cancelled its $250 million Kevitsa Facility.
• ENRC $500 million Promissory Note - On March 20, 2014 the Company agreed to revise the terms of its $500 million Promissory Note from Eurasia Natural Resource Corporation ("ENRC"). The $500 million Promissory Note was issued to the Company as a result of the settlement of its dispute with ENRC relating to the Company's former assets in the Democratic Republic of Congo. ENRC delisted from the London Stock Exchange in Q4 2013 triggering the mandatory prepayment of the $500 million Promissory Note. The Company negotiated with ENRC a $70 million principal reduction of the $500 million Promissory Note as well as the payment of all outstanding interest at 3% then due. A new $430 million Promissory Note was issued by a subsidiary of ENRC on March 20, 2014 with a term to final maturity of December 31, 2015. The interest rate on the $430 million Promissory Note has been increased from 3% to 5% with all interest at 5% of approximately $40 million prepaid until the final maturity date. The $430 million Promissory Note is secured against the shares in a subsidiary holding ENRC's Mozambique coal assets and will be guaranteed by ENRC Congo B.V, a wholly owned subsidiary of ENRC.
• $100 million equipment financing facility - On April 2, 2014 the Company completed a $100 million equipment finance facility with Caterpillar Financial Services Corporation for Kalumbila Minerals Limited, which owns the Trident Project in Zambia. This equipment financing facility will be used to purchase mobile equipment for the Sentinel and Enterprise Mines and is guaranteed by the Company.

Philip Pascall, First Quantum's Chairman and Chief Executive, commented

"To have achieved this financing restructuring within 12 months of the acquisition of Inmet is a significant accomplishment. From the beginning, we recognized just combining the financing facilities of First Quantum and Inmet was not optimal for the larger, more diversified consolidated company. The new financing structure is cost efficient and flexible providing the Company with the financial resources to complete our major development programs."

The Company will continue to explore further alternatives for improving the flexibility of its financing plan.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President

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