Revett Minerals Inc. (TSX: RVM; AMEX: RVM) announced today that its wholly-owned subsidiary, the Revett Silver Company, has entered into a revolving credit agreement with Societe Generale as administrative agent. The US$20 million credit facility is subject to interest at the London Interbank Offered Rate (“LIBOR”) plus 350 basis points for an initial three year term. The credit facility may be increased to US$30 million under specified circumstances.
The credit facility may be used for general corporate purposes, including I Bed development at the Troy Mine, Phase I development at Rock Creek, and the financing of eligible acquisitions. Letters of credit issued under the facility may also be used to satisfy reclamation bonding requirements at the Troy Mine and the Rock Creek project.
In the release, John Shanahan, President and CEO, stated “This credit facility gives us flexibility as we continue to develop and extend mine life at Troy and gear ourselves up for development at Rock Creek. It is important that we fully utilize cash flows from the Troy Mine to seed our next stage of growth, particularly at current low interest rates. This credit facility also enables us to enter into the debt markets and establish a track record as we plan our funding options for Phase II development of the Rock Creek project.”