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KBL repays Carpi debt

16th March 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed KBL Mining has received the first payment of $13.6-million of a $23-million metals offtake agreement signed earlier this month with US-based Quintana Minerals Corporation.

The payment has enabled KBL to repay the A$12.6-million owed to Capri Trading, which recalled the debt earlier this month.

KBL’s dispute with Capri regarding a default notice on the debt and allegations that the company had withheld relevant information from shareholders, would appear before the New South Wales Supreme Court on April 8 and 9.

Meanwhile, with the first of the Quintana funding received, three of the investor’s nominees have been appointed to the KBL board.

KBL has also issued the US investor with more than 49-million unlisted options, entitling the holder to subscribe for one fully paid ordinary KBL share, at a price of 2.47c each, prior to March 16, 2018.

“The Quintana agreement fully funds the development of the carbon-in-leach plant, zinc circuit and lead cleaner, clearing the way for Mineral Hill to increase its production to 330 000 t/y of ore, and puts the difficulties of the last year behind the company,” said KBL chairperson Jim Wall.

KBL has been operating the refurbished processing plant at the Mineral Hill mine since October 2011 to produce copper concentrates. During the refurbishment period, plant upgrades were identified to increase the plant capacity from 200 000 t/y to 250 000 t/y.

Edited by Creamer Media Reporter

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