Mirabela extends $127m facility

Perth-based Mirabela Nickel has extended its $127 million bridge financing facility with Barclays and Credit Suisse to June next year.

The extension follows last month's announcement by the company that its attempts to complete the syndication of $US280 million in senior debt had been delayed by two months due to market uncertainty.

Mirabela had hoped to complete the syndication, underwritten by Credit Suisse and Barclays, by early next month.

The company is focused on developing its Santa Rita nickel project in Brazil.

The announcement is pasted below:

Mirabela Nickel Limited (TSX: MNB, ASX: MBN) has signed an extension of its US$80 million ($A127 million) bridge financing facility with Barclays and Credit Suisse. Once certain registration formalities and other conditions are complete, the term of the bridge facility will be extended to 30 June 2009.

As part of the financing package, 1,500,000 options will be issued to each Bank exercisable at A$3.00 each on or before 7 July 2013.

The Barclays and Credit Suisse underwriting of a term loan facility for up to US$280 million remains in place, subject to standard conditions including syndication.

Barclays and Credit Suisse are leaders in emerging market financing and their teams respectively bring a wealth of experience in mining & metals, financing projects and Brazil specifically. They are complemented by two of the strongest commodity derivative groups in the investment banking sector.

In accordance with ASX Listing Rule 3.10.3, we confirm that Mirabela will grant a total of 3,000,000 options.

Each option is exercisable at A$3.00 on or before 7 July 2013. The options will be issued to Barclays and Credit Suisse for no consideration. The options are granted in connection with the extension of the bridge financing facility.

The options are not being issued to a class of securities holders and shareholder approval will not be sought.