TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Seafield Resources Ltd. ("Seafield" or "the Company") (TSX VENTURE: SFF) is pleased to announce that it has executed an agreement with RMB Australia Holdings Limited ("RMB") for a CAD $16.5 million loan facility ("Facility"), arranged by RMB Resources Inc., the resource financing division of the FirstRand Group of South Africa. The use of proceeds is to fully fund the bankable feasibility study ("BFS") for the Company's Miraflores Deposit and general corporate purposes.
In November 2012, the Company commenced its current ongoing exploration program on the Miraflores advanced-stage gold deposit, which is part of the Company's Quinchia Gold Project, located in the Risaralda Department of Colombia. The Facility provides the incremental financing the Company requires to complete the Miraflores BFS by the end of Q4 2013.
-- Debt term of 3 years at LIBOR plus 7.0% per annum;-- Warrants issued to RMB to purchase up to 33,000,000 common shares of the Company for 36 months at C$0.10 per common share, subject to TSX Venture Exchange approval;-- Security interests granted to the lender, which include a first ranking charge over the Quinchia Gold Project and a pledge of the securities and assets of Seafield Resources Ltd. and Minera Seafield S.A.S;-- Pre-payment at any time without penalty or from proceeds of project financing post BFS;
Milestones to Completion of BFS
-- The Company made the final option payment on the Miraflores mining claim on November 30, 2012 and acquired 100% interest in the Miraflores Gold Deposit;-- The Company is nearing completion of a 6,800 metre infill diamond drilling program at Miraflores, and results are being reported as they are received;-- The Company will announce an updated PEA in Q2 2013 based on the additional 6,800-metre drill program plus the 5,000-metres of drilling completed in July 2012;-- Completion of the Feasibility Study and the filing of the Environmental Impact Assessment ("EIA") are scheduled for completion by the end of Q4 2013.
"We are pleased to have RMB as a lender and an investor in Seafield as they are a sophisticated financial institution who realize the intrinsic value of the Miraflores project," stated AJ Ali, the Company's chairman of the board. "We look forward to their contribution in the project financing phase as well later this year."
About RMB Resources:
RMB Resources is the resource financing division of the FirstRand Group of South Africa, one of the largest financial services companies listed on the Johannesburg Stock Exchange (FSR: SJ). For over 17 years RMB Resources has specialized in providing Equity and Debt-Financing solutions for Small to Mid-Tier resource companies globally. RMB Resources provides debt funding through conventional project financing, commodity pre-paid forward financing as well as senior, subordinated, standby and bridge financing. RMB Resources operates from its offices in Sydney, Melbourne, London, Johannesburg, Denver and New York.