REDCORP VENTURES LTD. (RDV-TSX) (the
"Company" or "Redcorp"). As a result of recent
disruptions in global credit markets the Company wishes to advise on the
status of a portion of its cash investments which total approximately
$239.8 million. Redcorp's cash management criteria is
to invest in products that are ranked by the Dominion Bond Rating Service
("DBRS") as R1-High. In July, 2007, Redcorp invested on the
recommendation of its bank, HSBC Bank Canada, a total of $102.2
million in the following A Notes with five separate trusts managed under
the Coventree Capital Group Inc. "Coventree"):
Maturity Date
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Issuer
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Value Date
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Nominal Value
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Aug 13/07
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Aurora Trust
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Jul 12/07
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$35.0 million
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Aug 13/07
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Structured Investment Trust
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Jul 12/07
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$16.3 million
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Aug 14/07
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Rocket Trust
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Jul 12/07
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$16.5 million
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Aug 14/07
|
Rocket Trust
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Jul 13/07
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$16.2 million
|
Aug 14/07
|
Gemini Trust
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Jul 13/07
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$10.8 million
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Aug 14/07
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Comet Trust
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Jul 13/07
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$7.4 million
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Coventree announced on August 13 and 14, 2007 that it was experiencing
market disruption and as a result was unable to meet its repayment
obligations until its liquidity providers fund such repayments. The DBRS
has continued to rate the above trusts and their underlying assets as
R1-High.
The A Notes held by Redcorp came due and payable on the maturity dates
shown above but were not paid and remain outstanding. Redcorp is currently
investigating the implications of these events, which appears to be a result
of the current lack of liquidity for asset backed securities of the type
held by Coventree rather than the creditworthiness of its underlying
assets. The Company has been in discussions with Coventree and our
trustees, and will continue to monitor the circumstances. We will
keep our shareholders, warrantholders and noteholders informed.
The balance of Redcorp's investments of approximately $137.5 million,
including $36.5 million in escrow, are invested in a Royal Bank of Canada
bearer discount note and various term deposits with the HSBC Bank Canada,
Royal Bank of Canada, Canadian Imperial Bank of Commerce and
Toronto-Dominion Bank. These investments provide the Company with
sufficient funds to ensure there will be no disruption to its activities
while this matter is settled.
A conference call will be held at 8:30 a.m. EST to discuss the events as we
know them. To join in the call, interested parties may call
1-888-458-1598, toll free in Canada and U.S.A., and enter the participant
pass code 44002, followed by the "#" key. The call will be
moderated and will allow for a question and answer session. An audio
file of the conference call will be made available on the Company's
website.
Redcorp Ventures Ltd. is a Vancouver-based mineral exploration and
development company with active projects in British Columbia and
Portugal. Further information on Redcorp and the Tulsequah Project
can be obtained on the Company's website at www.redcorp-ventures.com and at
Redfern's website at www.redfern.bc.ca or by calling Terry Chandler at
1-888-669-4775.
ON BEHALF OF THE BOARD OF DIRECTORS
OF REDCORP VENTURES LTD.
"Terence Chandler"
Terence Chandler
President
Certain of the
statements made and information contained herein is "forward- looking
information" within the meaning of the Securities Act (Ontario) and
the Securities Act (Alberta) . Forward-looking information includes
disclosure regarding possible or anticipated events, conditions or results
of operations that is based on assumptions about future economic conditions
and courses of action and includes future oriented financial information
with respect to prospective results of operations or financial position
that is presented either as a forecast or a projection. Forward
looking information is often, but not always, identified by the use of
words such as "seek", "anticipate",
"believe", "plan", "estimate",
"expect" and "intend"; statements that an event or
result is "due" on or "may", "will",
"should", "could", or might" occur or be achieved;
and, other similar expressions. More specifically, forward looking
information contained herein includes, without limitation, statements
concerning the Company's plans at its Tulsequah Project (inclusive of the
Big Bull Project), the net present value of the Tulsequah Project, the
timing and amount of estimated future production and mine life, expected
future prices of gold, silver, copper, lead and zinc, metallurgical
response and net smelter return valuations, mineral reserve and mineral
resource estimates, estimated capital and operating costs of the project,
estimated capital pay back period, timing of development and permitting
time lines; all of which involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking information. Forward-looking
information contained herein is based on material factors and assumptions
and is subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from a conclusion, forecast
or projection in the forward-looking information. These include,
without limitation, material factors and assumptions relating to, and risks
and uncertainties associated with, the availability of financing for
activities when required and on acceptable terms, the accuracy of the
interpretation of drill results and the estimation of mineral resources and
reserves, the geology, grade and continuity of mineral deposits, the
consistency of future exploration, development or mining results with the
Company's expectations, metal price fluctuations, the achievement and
maintenance of planned production rates, the accuracy of component costs of
capital and operating cost estimates, current and future environmental and
regulatory requirements, favourable governmental relations, the
availability of permits and the timeliness of the permitting process, the
availability of shipping services, the availability of specialized vehicles
and similar equipment, costs of remediation and mitigation, maintenance of
title to the Company's mineral properties, industrial accidents, equipment
breakdowns, contractor's costs, remote site transportation costs, materials
costs for remediation, labour disputes, the potential for delays in
exploration or development activities, timely completion of future NP
43-101 compliant reports, timely completion of future feasibility studies,
the inherent uncertainty of production and cost estimates and the potential
for unexpected costs and expenses, commodity price fluctuations, currency
fluctuations, continuing global demand for base metals, expectations and
beliefs of management and other risks and uncertainties, including those
described under Risk Factors Relating to the Company's Business in the
Company's Annual Information Form, dated March 28, 2006, and in each
subsequent Management's Discussion and Analysis. Although the Company has
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to be
accurate. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from any conclusions, forecasts or projections
described in the forward-looking information. Accordingly, readers are
advised not to place undue reliance on forward-looking information. Except
as required under applicable securities legislation, the Company undertakes
no obligation to publicly update or revise forward-looking information,
whether as a result of new information, future events or otherwise.
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