re: Ann: Market Update - Brazilian Debt Stand... goarmyThis is a...

re: Ann: Market Update - Brazilian Debt Stand... goarmy

This is a positive announcement. The banks are working with MUN to sort out the loans. Why don't you ring the company to better understand the circumstances.

MUN should be able to repay all loans from the proceeds from mining the Crista deposit. The problem is that they now may not have the funds to get to that stage and so could need extra funds (but I have not checked with the company on this assumption). I understand that under Brazilian law it takes a long time to actually close a company down under bankruptcy law (5 years), which is why it is in the interest of the banks to work up a solution for MUN where they could get their money back.

The Peru operation is not the subject of any liens in respect of the loans associated with the Brazilian operations and the banks can not access MUN's Peru assets.

If MUN can mine Crista and Olhas then they can get a fair amount of capital towards building their own plant in Peru. This is some way off.

The next big step is for all the formalities associated with approvals for the road and mining of Crista to be finalised by the authorities. In the meantime mining in Peru is being ramped up to meet ongoing commitments.

loki