Tamerlane Ventures Inc. ("Tamerlane" or the "Company") (TSX-V: TAM) is pleased to report, that Renvest Mercantile Bancorp Inc. (“Renvest”), through its Global Resource Fund, the Company’s current lender, has agreed to subscribe for 3,846,154 common shares of equity at C$0.26 per share for a total equity investment of C$1.0 million. This transaction is expected to close on or before July 29, 2011 and is subject to approval by the TSX-Venture Exchange. The private placement of common shares will carry a four month hold period. No finder’s fees will be paid.
Renvest has agreed to subscribe for an additional C$1.0 million and be the lead order in a future equity placement the Company will undertake as part of the larger scale financing the Company is planning to complete later this fall. This tranche of equity is expected to be priced in the context of the market at the time and is expected to be issued at the same price and terms as subscriptions by other investors.
In order to proceed with advancing the Pine Point Project and incurring capital expenditures, Renvest has agreed to advance the second USD$5.0 million tranche of the previously announced US $10.0 million debt deal, which was closed and news released on December 16, 2010. A USD$50,000 extension fee will be paid to the Global Resource Fund to reinstate the facility. The full USD$5.0 million will be available for general corporate working capital, including continuation of development engineering, and for the purchase of long-lead items and equipment available on the secondary market, that can be purchased at deep discount to the prices used in the feasibility study. All other conditions on the Company’s ability to draw on the second USD$5.0 million tranche remain the same. The Company anticipates drawing USD$2.5 million of these funds by month end.
Tamerlane has entered into a binding agreement with a court ordered interim receiver for the purchase of a new, never-used, complete C$900,000 flotation equipment package at a considerable discount to current market prices. This flotation equipment will form a key piece of the processing and production facility at the Tamerlane R-190 Deposit at the Pine Point property. In advancing the project, the Company anticipates that the purchase of this processing equipment will close within 30 days and funds from the second tranche of the Renvest debt facility will be used for the purchase.
Tamerlane CEO Michael Willett commented: “We are extremely pleased that Renvest has chosen to participate in this project, not only as our lender, but now as an equity investor. This arrangement has allowed us to continue to advance the Pine Point Project with an opportunistic purchase of the flotation equipment.
This deal paves the way to implement the construction of the project leading to production on schedule, while we continuously look at ways to minimize the capital cost of the project. Tamerlane continues to advance all facets of the project financing, including the existing USD$60 million debt financing, the equipment leasing package, equity funding and off-take / metal streaming agreements. We are in advanced stage discussions with multiple financing providers on various term sheets. Renvest has a good understanding of the project and it’s their continued support that will benefit all shareholders.”
About Tamerlane Ventures Inc.
Tamerlane Ventures Inc. is an exploration and development mining company with advanced base metal development projects in Canada and Peru. The Company’s immediate focus is bringing the 100%-owned Pine Point Project to production. The Company is currently in the financing phase and expects to commence construction this fall. Tamerlane plans to sell the well-known, Pine Point Concentrates to various smelting facilities around the world. The Company also plans to develop its Los Pinos heap leach copper project in Peru.
“Michael A. Willett”
Chief Executive Officer
For further information, please contact:
Tamerlane Ventures Inc.
Director of Investor Relations and Corporate Communications
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