Consolidated Thompson Enters Into A New US$250 Million Revolving Credit Facility

Consolidated Thompson Mining (TSX:CLM) announced that it has secured a US$250 million senior  revolving credit facility witha number of  banks, some of which are : Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Desjardins.

The press release is quoted as saying:

The facility can be drawn in Canadian or US dollars and will bear interest at floating rates, plus a margin based on the leverage ratio of the Corporation. Both CLM and its subsidiary, The Bloom Lake Iron Ore Mine Limited Partnership, will have the ability to borrow under the facility. The obligations under the facility will be senior secured indebtedness ranking pari passu with the US$100 million senior secured bonds issued in January 2010. A portion of the facility can be used for the issuance of letters of credit, which will allow for the immediate release of the restricted cash currently shown on the balance sheet of the Corporation.

Brian V. Tobin, Executive Chairman, President and CEO of the Company says:

“The entering into this new revolving credit facility marks another important milestone in the development of our company, reinforcing our financial position as we implement our strategic and growth plans for the future. This second important financing transaction in two months once again demonstrates the strong support of the financial community for CLM as a profitable producing mining company.”

To access the full release, click here.