Magellan Agrees Financial Advisory Role with Endeavour Financial for Project Financing at Coringa
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 12, 2013) - Magellan Minerals Ltd. (TSX VENTURE:MNM)(OTCQX:MAGNF) ("Magellan") is pleased to announce that it has engaged Endeavour Financial Limited (Cayman) ("Endeavour") to act as Magellan's financial advisor regarding all aspects of identifying, assessing and securing project financing for the development of Magellan's Coringa gold project.
The Coringa project is located in the southern part of Para state in northern Brazil close to existing infrastructure.
Commenting on the agreement with Endeavour, Alan Carter, President & CEO, stated "despite extremely difficult market conditions, we continue to progress with the feasibility study at Coringa. Our PEA of December 2012 indicates a life of mine grade of 5.7 g/t gold, an IRR of 33% at an assumed gold price of $1,350/oz, and an initial capital cost of $65M for a gold mine that is expected to produce in excess of 50,000oz of gold per year. Our agreement with Endeavour will allow us to thoroughly assess in a timely fashion, the available project financing alternatives as we advance the project through feasibility to a construction decision".
Endeavour Financial Limited (Cayman) is a private independent merchant banking company focused on providing expert and unbiased financial advisory services to the global natural resources sector. Endeavour has a history of achieving success for clients based on resource industry focus, innovative transaction skills and the diverse professional backgrounds of its award-winning team. Offering advice in project, corporate and debt capital markets; equity-linked financings; mergers and acquisitions; and strategic business development over more than two decades, Endeavour has established itself as a leading financial advisor in the natural resources sector. Specific to the mining sector, in the last ten years the firm has closed in excess of US$ 4 billion of development financings for single-asset emerging producers.
Magellan Minerals (TSX VENTURE:MNM)(OTCQX:MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project is currently the subject of a Feasibility Study and contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.
News release #2013-6
FOR FURTHER INFORMATION PLEASE CONTACT:
Magellan Minerals Ltd.
President and CEO