Hochschild announces loan facility for Inmaculada

RNS Number : 7078A

Hochschild Mining PLC

25 March 2013

 



25 March 2013

Hochschild Announces US$140 million loan facility with BBVA Continental and Banco Credito del Peru for Inmaculada Project

Hochschild Mining plc ("Hochschild") announces that its 60% owned joint venture Minera Suyamarca S.A.C ("Suyamarca") has entered into a $140 million secured loan facility (the "Facility") with BBVA Continental and Banco Credito del Peru to partially finance the initial capital expenditure for the Inmaculada project (total capital expenditure $370 million).

The loan facility has a term of seven years with no principal payable for the first two years. The interest rate is based on the 3-month LIBOR rate plus 3.0%, with customary closing fees and charges. The loan will be non-recourse to both Hochschild and International Minerals Corporation who own the remaining 40% of Suyamarca.

Suyamarcaowns 100% of the Pallancata mine as well as the Inmaculada project in Peru, with Hochschild being the operator of both properties.

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Enquiries:

Hochschild Mining plc

Charles Gordon                                                                         [phone]

Head of Investor Relations

RLM Finsbury

Charles Chichester                                                                    [phone]

Public Relations

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About Hochschild Mining plc

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has almost fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.

Forward looking Statements

This announcement contains certain forward looking statements which may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of Hochschild Mining plc and its current goals, assumptions and expectations relating to its future financial condition, performance and results.

Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "estimates" and words of similar import. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining plc may be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of Hochschild Mining plc and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, Hochschild Mining plc does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.

 

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