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Tamerlane Ventures Inc. ("Tamerlane" or the "Company") (TSX-V: TAM) is pleased to announce that the Company has closed the previously announced private placement with Renvest Mercantile Bancorp Inc., through its Global Resource Fund (“Global”), the Company’s current lender. The Company issued 3,846,154 common shares of Tamerlane at C$0.26 per share for a total equity investment of C$1.0 million. The transaction has been approved by the TSX Venture Exchange. The private placement of common shares carries a four month hold period. No finder’s fee was paid.
As previously announced on July 21, 2011, Global 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, Global has agreed to advance the second US$5.0 million tranche of the previously announced US$10.0 million debt facility, which was closed and announced on December 16, 2010. A US$50,000 extension fee was paid to Global to reinstate the facility. The full US$5.0 million will be available for general corporate purposes, including continuation of development engineering, and for the purchase of long-lead items and equipment available on the secondary market, which 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 US$5.0 million tranche remain the same. The Company has drawn down US$2.5 million of these funds and issued 250,000 common shares of Tamerlane to Global as a loan draw down fee.
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.
About Renvest Mercantile Bancorp Inc.
Renvest Mercantile Bancorp, through its Cayman-based Global Resource Fund, provides financing for companies and projects in the natural resource sector. Loans are for terms of up to 24 months typically in the form of a senior secured debenture and often as a convertible debenture.
“Michael A. Willett”
Chief Executive Officer
For further information, please contact:
Tamerlane Ventures Inc.
Director of Investor Relations and Corporate Communications
Phone: (360) 752-9462
Cell: (360) 303-2703
Fax: (360) 752-9463
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.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward-looking information. It is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and, accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in zinc, lead and other resource prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.