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TULSEQUAH
CHIEF MINE UPDATE
CONCENTRATE SALES AND CONTINGENT FINANCE
FACILITY AGREEMENTS
February 4, 2008 -
Vancouver, British Columbia - Redcorp Ventures
Ltd. (TSX:RDV) (the "Company" or "Redcorp") is pleased to announce that it has
executed a Memorandum of Understanding "MOU" with MRI Trading AG
("MRI") of Zug, Switzerland governing the terms of sales
agreements for all of the proposed production of zinc, copper and lead
concentrates from the Tulsequah Chief Mine,
northwest BC. In addition the MOU includes indicative terms for MRI's
provision of a contingent credit facility of CAN$25 million for the Tulsequah Chief Mine construction and working capital,
subject to certain terms and conditions.
The contingent credit facility is compliant with the terms and conditions
for such a facility as permitted under the terms of the Company's Note
Indenture and will be secured by a second charge against the assets of Redcorp until such time as all senior debt held by the
corporate noteholders has been paid. The facility
incurs no fees, set‑up charges or hedging requirements. Due diligence
requirements for the facility will include a review of the project funding
requirements and the recovery of funds held by Redcorp
in asset-backed commercial paper ("ABCP") investments, currently
proposed for re-structuring under the terms of a Framework Agreement
released by the Pan-Canadian Committee. MRI has expressed its willingness
to assist Redcorp in identifying alternative
funding sources to replace any shortfall resulting from incomplete recovery
of such investments, should that be identified, on completion of the
proposed Canadian ABCP re-structuring.
The MOU contemplates that the parties will move immediately to finalize the
agreements for the concentrate sales and for the contingent subordinated
credit facility on completion of legal documentation and due diligence. The
concentrate sales net terms are superior to the terms assumed for the
Feasibility Study completed by Wardrop
Engineering Inc. ("Wardrop") on January
29, 2007 and are expected to result in an improved net smelter return for
the project, subject to the variables of final realized commodity prices
and exchange rates. MRI Trading AG is a top-tier trader of
concentrates and other non-ferrous raw materials. It is part of
the MRI Group of companies, a leading investment and trading group in
the commodities arena. The Group has a global presence through
its offices in Beijing and Shanghai, Santiago de Chile, Lubumbashi,
Johannesburg, New Delhi
and Brisbane.
Tulsequah Chief Mine Project
The Tulsequah Chief Mine project is owned
by Redfern Resources Ltd., a wholly-owned
subsidiary of Redcorp. The project entails the
development of a 2000 tpd underground mine and
milling operation producing approximately 125,000 tonnes per annum of zinc,
copper and lead concentrates with very significant gold and silver credits.
Located in northwest BC the mine is currently under development with
construction in progress on site infrastructure including a new airstrip
and site connecting roads. Although there have been some delays on certain
aspects of permitting and construction which may affect the project
completion date, detailed engineering and procurement activities are 40%
complete with all key long-lead time equipment items secured. A
construction update will be issued shortly.
Redcorp Ventures Ltd. is a Vancouver
based mineral exploration and development company with active projects in British Columbia, Canada
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 toll-free to Troy Winsor, Manager of Investor
Relations or Salina Landstad, Manager of Public
Relations at the contact numbers listed below.
ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP
VENTURES LTD.
"Terence Chandler"
Terence Chandler
President and
CEO
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 our plans at our 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, mineral
reserve and mineral resource estimates, estimated capital and operating
costs of the project, estimated capital pay-back period, estimated asset
retirement obligations, timing of development and permitting time lines;
all of which involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, 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 our 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 ultimate recovery amount, if any, of our investment
in third-party asset-backed commercial paper (ABCP) that is currently
undergoing liquidity restructuring by the Committee representing the
Montreal Accord, the availability of specialized vehicles and similar
equipment, costs of remediation and mitigation, maintenance of title to our
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 NI 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 Our Business in our Annual
Information Form, filed on SEDAR on April 2, 2007, and in each subsequent
Management's Discussion and Analysis. Although we have 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, we undertake 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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Contacts:
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Troy Winsor
Manager, Investor Relations
1-888-225-9662
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Salina Landstad
Manager, Public Relations & Corporate
Communications
604-639-0135 / 1-888-669-4775
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