Mirabela Nickel noteholders OK loan draw, support recapitalization

By Caroline Salls

Pittsburgh, April 23 - Mirabela Nickel Ltd. said an informal committee of holders of more than 65% of its $395 million of 8¾% unsecured notes due April 15, 2018 agreed to allow it to draw down the remaining $10 million available under a $45 million loan obtained in December.

According to a company news release, the remaining funds available under the loan will be used to support the company and subsidiary Mirabela Mineração do Brasil Ltda., as well as continued operations at the Santa Rita nickel mine.

In addition, Mirabela said the committee still supports the proposed comprehensive recapitalization announced on Feb. 25.

The company's administrators and their advisers are continuing to make progress on the different elements of the recapitalization proposal, and no alternate proposals have been received, according to the release.

Mirabela said a creditors' meeting will be convened "in due course" to consider a proposal for a deed of company arrangement in connection with the recapitalization proposal.

The company said this is the only option currently available to ensure the ongoing operation of the Santa Rita nickel mine.

Mirabela is a nickel producer located in Perth, Western Australia.

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