VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / January 22, 2015 / Anfield Resources Inc. (TSX.V: ARY)(OTCQB: ANLDF) (Frankfurt: 0AD) ("Anfield" or "the Company") is pleased to announce that it has received a binding commitment letter from Ultegra Financial Partners, Inc., a U.S. debt lender, for a credit facility (the "Facility") in an amount of up to US $12,000,000. This is a critical achievement for the Company as it essentially removes the previous financial uncertainty surrounding Anfield's pursuit of substantially all of Uranium One Americas' ("Uranium One") U.S.-based conventional uranium assets, including the Shootaring Canyon mill, one of only three licensed, permitted and constructed uranium mills in existence in the U.S. The closing of the Uranium One transaction is subject to obtaining final regulatory approvals and the funding of the Facility.
Specifically, the Facility will allow Anfield to meet all of its financial obligations required to close the transaction provided for under the asset purchase agreement with Uranium One Americas ("Uranium One") announced on August 18, 2014 (see news release), including obtaining replacement letters of credit sufficient to replace Uranium One's existing surety bonds on the Shootaring Canyon uranium mill and associated assets. Funding of the credit facility is intended to occur by the March 31, 2015 closing of the Uranium One transaction. .
Corey Dias, CEO of the Company stated: "We are thrilled to have been able to secure a binding financing commitment, in the form of a credit facility, which would allow us to not only meet our financial obligations with regard to the closing of the Uranium One transaction but also begin the process of advancing these assets toward commercial production. Moreover, the credit facility will allow us to do so without any dilution to existing shareholders. Finally, the impending acquisition of the Shootaring Canyon mill, whose scarcity value is reflected by it being one of only three licensed, permitted and constructed conventional uranium mills in existence in the United States, accelerates Anfield's path to production, which will then place it into a very select group of North American uranium producers or near-term producers.
We are also encouraged by the positive news which continues to flow from the uranium sector. China has recently outlined a five-year plan wherein it is forecasting the construction of six to eight nuclear reactors per year between 2016 and 2020, more than doubling its existing reactor base of 22. In addition, in December Japan approved the restart of two additional reactors, increasing the total number of reactors approved for restart to four since November, potentially signaling a positive trend in that market. Finally, with 70 reactors currently under construction worldwide and approximately 500 additionally planned and proposed, it is clear that nuclear power is becoming increasingly important as the only viable source of large-scale, carbon-free baseload power to meet burgeoning world-wide electricity demand. Given the above, we expect that worldwide demand for uranium will continue to increase, and as such, we continue to pursue the necessary steps toward restart of the Mill, with the vision that uranium processed in the Mill will play a critical role in meeting increased North American and world-wide demand."
The Facility's terms include an annually-adjusted 3.3% variable interest rate, which will be adjusted based on the change in the LIBOR rate, plus a fixed 11% rate. In addition, the term of the Facility is 48 months. Finally, some or all of the assets to be acquired via the transaction with Uranium One will form the collateral pool against which the Facility is secured.
The Company has already received conditional approval for: 1) the Uranium One transaction from the TSX Venture Exchange; 2) the transfer of the Shootaring Canyon Mill's radioactive materials license from the Utah Division of Radiation Control; and 3) the transfer of a radio communications license associated with the Mill from the Federal Communications Commission. The Company must also receive clearance from the Committee on Foreign Investment in the United States, which clearance the Company fully expects to receive.
About Anfield's Uranium Properties
Anfield is an energy metals exploration, development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its energy metals assets. Anfield is a publicly-traded corporation listed on the TSX-Venture Exchange (ARY-V), the OTCQB (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfield is focused on the acquisition and development of an array of strategic energy metals projects as summarized below:
Uranium
Upon the closing of the Shootaring Transaction, the key asset in Anfield's portfolio will be the Shootaring Mill in Garfield County, Utah. The Shootaring Mill is strategically located within one of the historically most prolific uranium production areas in the United States, and is one of only three licensed uranium mills in the United States.
Upon the closing of the Shootaring Transaction, Anfield's uranium assets will consist of mining claims and state leases in southeastern Utah, Colorado, South Dakota and Arizona totalling nearly 65,500 acres (26,507 hectares), targeting areas where past uranium production or prospecting occurred. Upon the closing of the Shootaring Transaction, Anfield's uranium assets will include the Velvet-Wood Deposit, containing a measured and indicated resource of 4.6 million pounds U3O8 at an average grade of 0.29%, as well as additional deposits containing a historical measured and indicated U3O8 resource estimate of 2.2 million pounds, all situated within a 125-mile radius of the Shootaring Mill.
Note on Historical Estimates: Anfield is not treating the historical estimates referred to above as current mineral resources or mineral reserves. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The tonnages, grades and sources of the 2.2 million pound historic resources referred to above is the Frank M Uranium Project with an indicated resource of 1,095,000 tonnes at 0.101% U3O8 for 2,210,000 pounds (Frank M Uranium Project, 43-101 Mineral Resource Report, Garfield County, Utah USA dated 10-June-2008, prepared by BRS, Inc.).
Copper
The Binghampton Copper Queen (BCQ) project, located 17 miles (27 km) southeast of Prescott, Arizona, and within the Arizona VMS Belt, consists of 5,021 acres (2,032 hectares) of both patented and State land, with two past-producing mines on the property.
The North Star Copper Project, located less than 50 miles (80 km) northwest of Tucson, consisting of 200 mining claims covering approximately 4,000 acres (1,619 hectares), targets relatively shallow oxide copper at the historic North Star site in the heart of copper country in southern Arizona.
The Aura Project, a nascent copper operation in Atacama, Chile, is located 20 miles (32 km) east of Copiapo and consists of eight mining concessions totalling over 2,800 acres (1,133 hectares) in one of the foremost copper producing regions in the world.
On behalf of the Board of Directors
ANFIELD RESOURCES INC.
Corey Dias, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Anfield Resources Inc.
Clive Mostert
Corporate Communications
780-920-5044
[email protected]
www.anfieldresources.com
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SOURCE: Anfield Resources Inc.