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Tamerlane Ventures Inc. ("Tamerlane" or the "Company") (TSX-V: TAM) is pleased to announce that it has reached an agreement in principle for the extension to October 16, 2013 of the Company’s US$10 million senior secured bridge loans with its lender and shareholder, Global Resource Fund (“Global”) which is managed by Renvest Mercantile Bancorp Inc. The loans had been scheduled for repayment on October 16, 2012. In addition to the extension of the maturity, Global has also agreed that the interest of approximately US$105,000 per month due for September 2012 through December 2012 will be capitalized and added to the face value of the loan. As consideration for the extension, the Company has agreed to pay Global a fee of US$1,000,000 which will be capitalized and added to the face value of the loan. The Company will also issue Global 16,172,673 Tamerlane common shares, in addition to the 5,096,154 common shares Global now holds. Global will then hold 21,268,827 shares, or 19.9% of Tamerlane’s outstanding shares. Beginning in January 2013, interest must be paid monthly in cash, and interim principal repayments will be required equal to 50% of new equity in excess of $1,000,000 raised by the Company subject to minimum repayments of $1,500,000 on or before each of March 31, 2013 and June 30, 2013. Interest on the loans will remain at 12.5% per annum. Global will also have the right to nominate one member to the Company’s board of directors.
Mike Willett, CEO of Tamerlane, commented, “We are pleased that the Company and Global have reached agreement on an extension of the Company’s senior secured loans. The one-year extension will give Tamerlane time to secure financing for our Pine Point project. We are excited that Global will become a significant shareholder and supports our vision moving forward.”
The Company also announces the filing of its unaudited interim condensed consolidated financial statements and management's discussion & analysis ("MD&A") for the three months and nine months ended September 30, 2012, as required by National Instrument 51-102 - Continuous Disclosure Obligations.|
Tamerlane's financial statements and MD&A for the three and six months ended September 30, 2012 are available for viewing on the Company’s website at www.tamerlaneventures.com and on SEDAR at www.sedar.com.
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 following financing. 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 Corporate Communications and Investor Relations
Phone: (360) 332-4636
Fax: (360) 332-5025
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