| ||October 07, 2010|
North American Tungsten Announces: Production commences at the CanTung Mine
North American Tungsten Corporation Ltd. (the "Company") is pleased to announce:
- PRODUCTION COMMENCES AT THE CANTUNG MINE
- NEW LOAN FACILITIES
- CEO APPOINTED PRESIDENT OF THE INTERNATIONAL TUNGSTEN INDUSTRY ASSOCIATION
PRODUCTION COMMENCES AT THE CANTUNG MINE
The re-start of production at its 100% owned CanTung Mine has now commenced. Mr. Stephen Leahy stated "We are so pleased to be back in production and that will we will be shipping Tungsten concentrate to customers this month (October)." He further stated "the recent price rise of Tungsten to US$265/$268/metric tonne unit ("mtu") Ammonium Paratungstate ("APT") is a further testament to the continued strong demand and very slim supply."
NEW LOAN FACILITIES
The renewal and increase of its credit facilities with HSBC Bank Canada (the "Bank") including:
There is a general security agreement in favour of the Bank.
- An operating loan facility of up to CAD$8,000,000 (previously CAD$6,000,000) to finance accounts receivable and inventories, as supported by Export Development Canada ("EDC"). Drawings against the facility may be in US dollars as well as Canadian dollars, subject to a US$5 million maximum;
- Existing equipment loans of approximately $385,000;
- A new facility of up to CAD $3,500,000 for capital expenditures including acquisition of equipment, guaranteed by EDC for at least 50%. Repayments of principal will commence after six months and will be made over thirty months.
- A new facility of up to CAD$3,500,000 for new and used equipment. Repayments of principal will commence after six months and will be made over thirty months.
The Company has completed an amended Reclamation Security Agreement ("RSA") with the Department of Indian Affairs and Northern Development ("DIAND"). The RSA defines the form and terms of the security deposit required to be posted pursuant to the Company's water license issued by the Mackenzie Valley Land and Water Board ("MVLWB").
The Company has also received consent from the MVLWB for a reduction of $1,422,161 in the amount of security required to be posted under the water license.
In addition, the Company has entered into a loan agreement with Caterpillar Financial Services Corporation for financing of US$2,785,560 for the acquisition of three new generator sets and related equipment. The term of the secured loan is 48 months.
CEO APPOINTED PRESIDENT OF THE INTERNATIONAL TUNGSTEN INDUSTRY ASSOCIATION
The Company further announces that Mr. Stephen Leahy, Chairman and CEO of the Company has been appointed President of the International Tungsten Industry Association based in London, England, for a two year term.
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is the 100% owner of the CanTung Mine and the MacTung development project in Canada. It is one of the largest producers of tungsten concentrates in the western world. MacTung is one of the world's largest undeveloped high grade tungsten-skarn deposits. Through an affiliate, the Company is also developing downstream product capability.
After a temporary suspension, the Company has re-activated the CanTung Mine against a background of increased demand and rising prices.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen M. Leahy
Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
Phone: +1.604.684.5300 Fax: +1.604.684.2992
You can view the Next News Releases item: Mon Oct 18, 2010, North American Tungsten Announces a Non-Brokered Private Placement of Up to Us$2,850,000 Convertible Debentures and CDN$2.66 Million of Units
You can view the Previous News Releases item: Tue Sep 28, 2010, North American Tungsten Announces Extended Life of Cantung Mine
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