NEW YORK Junior nickel miner Liberty Mines Inc. has extended the maturity date of two loan agreements with Ottawa, Ontario-based Jien International Investment Ltd. to March 14, 2014.
"Extending the terms of our financing agreements is an important step towards ensuring our long-term viability, particularly with the recovery of nickel prices expected in the near term," Liberty president and chief executive officer Chris Stewart said in a statement.
The agreements, a fully drawn term loan of Canadian $28.9 million ($29 million) and a fully drawn revolving loan in the principal amount of C$20 million ($20.1 million), originally were due Dec. 31, 2012.
Both companies said in mid-August that they were in negotiations to restructure Libertys debt after it put its Timmins nickel mine in Ontario on care and maintenance due to low nickel prices (amm.com, Aug. 14).
Toronto-based Liberty recorded a net loss of C$8.46 million in the third quarter, when cash costs at Timmins stood at C$8.02 per pound.
Three-month nickel settled at $17,160 per tonne ($7.78 per pound) in official trading Monday on the London Metal Exchange.