VANCOUVER, March 2, 2012 /CNW/ - Polaris Minerals Corporation (TSX:PLS) (the "Company" or Polaris")
announces that it has completed the debt refinancing announced in
January and has issued an aggregate of $15 million in Senior Secured
Notes (the "Notes") that mature December 31, 2016. (Financial values are in Canadian Dollars unless otherwise noted).
The net proceeds from the issue of the Notes were used to repay all
existing indebtedness of the Company, including interest, under a
US$6.35 million credit facility with the Company's exclusive shipper
and a $5.0 million bridge loan secured in November 2010. The balance of
the proceeds will be used for general working capital purposes.
The Notes are senior secured obligations of the Company that have a
first charge against the assets of the Company other than cash and
accounts receivable. The Notes bear interest at a rate of 12% per
annum, payable semiannually and may be redeemed by the Company at any
time without penalty. In conjunction with the issue of the Notes,
Polaris issued an aggregate of 13,200,000 common share purchase
warrants (the "Warrants") that are exercisable at a price of $0.44 per
share until December 31, 2012, at $0.50 per share until December 31,
2013, at $0.55 per share until December 31, 2014, at $0.60 per share
until December 31, 2015 and at $0.65 per share until December 31, 2016.
Herb Wilson, President and CEO, commented: "We are pleased to have
completed this refinancing step and to have consolidated the Company's
debt into a single, 5-year term facility."
Polaris Minerals Corporation is exclusively focused on the development of quarries and the
production of construction aggregates in British Columbia for marine
transport to urban markets on the Pacific coasts of North America to
meet growing local supply deficits. In 2007, Polaris began shipping
sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver
and Hawaii.
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
securities laws. These statements and information appear in this
document and include estimates, forecasts, information and statements
as to management's expectations with respect to, among other things the
future financial or operating performance of the Company, costs and
timing of the development of the construction aggregate quarry, the
timing and amount of estimated future production, costs of production,
capital and operating expenditures, requirements for additional
capital, government regulation of quarrying operations, environmental
risks, reclamation expenses, and title disputes. Often, but not
always, forward-looking statements and information can be identified by
the use of words such as "may", "will", "should", "plans", "expects",
"intends", "anticipates", "believes", "budget", and "scheduled" or the
negative thereof or variations thereon or similar terminology.
Forward-looking statements and information are necessarily based upon a
number of estimates and assumptions that, while considered reasonable
by management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. Readers are cautioned
that any such forward-looking statements and information are not
guarantees and there can be no assurance that such statements and
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's expectations are disclosed under
the heading "Risks and Uncertainties" in the Company's Annual Report
and under the heading "Risk Factors" in the Company's Annual
Information Form (AIF) in respect of its financial year-ended December
31, 2010, both of which are filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements and information whether
as a result of new information, future events or otherwise. All
written and oral forward-looking statements and information
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the foregoing cautionary statements.