Announcement on the TSX last night that MBN is getting three lenders to lend $us 40 million each plus caterpiller to lend #us 30 million with another lender waiting approval to lend $us 40 million. Interesting is the two year repayment grace with interest added to principal. The loan is a 6.5 year term loan at libor plus margin. Second Announcement was that MBN is buying an expanded mining fleet for $us 55 million from caterpiller finance. previous announcement have always said that they where going to lease these assets. anyway $us 5 million down the rest borrowed. Shortfall of $us 95 million must be sourced another way (issue of shares or Borrowings). The Canadians dropped MBN on the market with the share price falling. I personally think its not too bad, theirs are few loose ends and a surprise with the caterpiller purchase.
MBN Price at posting:
$1.08 Sentiment: Hold Disclosure: Held
