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Additional Information
Market: ASX, TSX
Sector: General Mining
Epic: ASX:MBN
News: Latest news
Web Site: Mirabela Nickel
Other Articles: 20-11-200903-11-200912-10-2009

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Saturday March 13, 08:47Premium risk at Prudential

Insurance giant Prudential has stolen the headlines this week, after their decision to buy AIA, the Asian life business of US insurer AIG, has attracted a mixed response from shareholders.

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Friday March 12, 07:58Lithium and rare earths markets poised for growth

Right now, the world relies almost completely on China for its rare-earth supply. The Chinese have made it clear that they want to keep more supply for themselves as they try to be the world leader in green technology

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Friday March 12, 07:51White Energy enters coal deal with China Guodian Group

White Energy Company (ASX: WEC; OTCQX: WECFY) has inked a non-binding heads of agreement with state owned Guodian Inner Mongolian Energy Sources Co Limited to develop a coal upgrading [...]

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Mirabela Nickel

Mirabela Nickel

Mirabela Nickel Ltd (ASX:MBN, TSX:MNB) is an emerging nickel producer with a portfolio of prospective nickel and other base metal targets in Brazil.

Mirabela's lead project under development is Santa Rita - a disseminated nickel sulphide deposit in the state of Bahia. Production of nickel is targeted to commence in 2009/10. This is the largest nickel sulphide resource in South America and the largest greenfield nickel sulphide discovery in the world in the last 10 years.

Thursday, April 09, 2009

Mirabela Nickel in huge fund raising coup, produce at Santa Rita, Brazil in 2009

Mirabela Nickel Limited (TSX:MNB,ASX:MBN) has entered into a credit agreement (the “Amended Senior Loan Agreement”) with,among others, Barclays Bank plc, Credit Suisse International, WestLB AG, Caterpillar Financial Services Corporation and Bayerische Hypo‐und Vereinsbank AG as lenders, for a non‐revolving term loan in the aggregate principal amount of US$190 million.

The drawdown of funds was subject to the satisfaction of a number of conditions precedent (the “Conditions Precedent”) all of which have been satisfied.

On March 19, 2009, the Company completed a public offering of 120 million subscription receipts at a price of C$1.00 per subscription receipt for aggregate gross proceeds to the Company of C$120 million.  The Company will now settle the previously announced private placement of approximately 32.4 million ordinary shares to institutional and sophisticated investors outside of Canada, principally in Australia and Asia, at a price of C$1.00 (A$1.20) per share for gross proceeds of approximately C$32.4 million.

Other nickel companies finding current conditions challenging include: Norilsk Nickel OTCBB:NILSY,LSE:MNOD; Vale NYSE:RIO, NYSE:RIO-P and BHP Billiton NYSE:BHP, LSE:BLT.

Proactive Comment

Mirabela Nickel has now raised senior debt and equity to fund the completion of construction of the Company’s Santa Rita Project in Bahia State, Brazil, remedy its working capital deficiency and pay amounts due under the Company’s project credit facilities.

It is no mean feat in these markets and conditions to have raised US$190m in debt and over C$154m in equity.

Mirabela will now fast-track Santa Rita in Brazil, to become the world's third largest open pit nickel mine in the world.  Construction is 85% complete and the plant will have a capacity of 18,500 tpa of nickel in a sulphide concentrate from one open‐cut mine starting from mid 2009 increasing to 27,000 tpa by mid 2010. At this rate of production the project will have a mine life of at least 19 years.

All along, the key to getting this transaction done was the low cash costs at Santa Rita - US$2.85 (after credits), making it profitable at current low cycle nickel prices.

Santa Rita is the largest new nickel sulphide discovery worldwide in 12 years – potentially more nickel than Voisey’s Bay ovoid.

With a tightly held share register, low number of outstanding shares on issue, Mirabela Nickel is perhaps one of the stand-out mining stocks in Australia for the medium to long term. Not that long ago the share price was up around A$8.00, so with the progress made at Santa Rita, low cash costs, production commencing in 2009 and the current share price sitting at A$1.59, the future looks awfully good for Mirabela Nickel.

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