Noble Completes 1.5 Million Refinancing and Purchase of Project 81
TORONTO, Oct 23, 2012 (Menafn - MARKETWIRE via COMTEX) --Noble Mineral Exploration Inc. (the "Company," "Noble" or "NOB") (frankfurt:NB7) (pinksheets:NLPXF) announcesthat, further to its press release of October 10, 2012, it hascompleted the refinancing of debt owing for the purchase of itsProject 81 property (the "VTB Mortgage").
The completed loan (the "Loan") is from a syndicate of privatelenders and provides financing of 1,500,000. The Loan matures onOctober 22, 2016 and is secured by a mortgage on the propertycomprising Noble's Project 81, as well as by a charge on all otherassets of the Company. The mortgage securing the Loan is subordinatein ranking to the mortgages in favour of Franco-Nevada Corporationwith respect to debentures issued in October 2011 (for a principalamount of 2,000,000) and April 2012 (for a principal amount of1,500,000). Interest accrues on the Loan at 12% per annum, withinterest to be paid quarterly. As additional consideration to theparties advancing the Loan, Noble has issued a total of 6,000,000common shares (issued at a deemed price of 0.05 per share). Allsecurities issued in connection with this placement will be subjectto a four-month hold period from October 22, 2012.
While the Company's press release of October 10, 2012 had anticipatedthat IBK Capital Corp. would receive a commission for its assistancein arranging the Loan, at the request of the TSX Venture Exchange(the "Exchange"), no commission will be paid. The Exchange acceptedthe terms of the transaction on October 19, 2012.
The proceeds of the Loan were used to repay the VTB Mortgage'sprincipal amount of 1,500,000 due to Resolute FP Canada Inc.(formerly AbiBow Canada Inc.) that had remained outstanding fromNoble's acquisition of Project 81.
During the difficult financial market conditions for junior resourcecompanies the Company will continue to review all of its assets inorder for them to be monetized. Those assets include timber rights,recreational real estate lands, and the potential for joint ventureparticipations.
Independent valuations of the Company's holdings indicate a realestate valuation of the freehold lands of Project 81 to be in theorder of 20-25 million, a present value of timber resources onProject 81 to be in the order of 18.5 million, and a preliminarydiscounted net present value of potential carbon sequestration onProject 81 lands to be in the order 24.4 million to 72.5 millionusing carbon prices of 8.60 and 14 per tonne respectively.
About Project 81:
Project 81, the Company's flagship project, is a 72,218 hectarepatented and staked land package divided into 2 blocks. The patentsinclude surface, mineral and timber rights, and host a significanttimber resource plus a number of zones that have historicalexploration identifying nickel and gold mineralization (these sampleresults are historical and non 43-101 compliant).
About Noble Mineral Exploration Inc.:
Noble Mineral Exploration Inc. is a Canadian based junior explorationcompany holding in excess of 72,000 hectares of property in theTimmins, Iroquois Falls and Smooth Rock Falls areas of NorthernOntario. The Company also holds a portfolio of diversifiedexploration projects at various stages of exploration, Gold in theWawa area of Northern Ontario, and Uranium in Northern Saskatchewan.
More detailed information is available on the website atwww.noblemineralexploration.com
Cautionary Statement:
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.No stock exchange, securities commission or other regulatoryauthority has approved or disapproved the information containedherein.
The foregoing information may contain forward-looking statementsrelating to the future performance of Noble Mineral Exploration Inc.Forward-looking statements, specifically those concerning futureperformance, are subject to certain risks and uncertainties, andactual results may differ materially from the Company's plans andexpectations. These plans, expectations, risks and uncertainties aredetailed herein and from time to time in the filings made by theCompany with the TSX Venture Exchange and securities regulators.Noble Mineral Exploration Inc. does not assume any obligation toupdate or revise its forward-looking statements, whether as a resultof new information, future events or otherwise.
Contacts:
Noble Mineral Exploration Inc.
H. Vance White
President
Phone: 416-214-2250
Fax: 416-367-1954
eMail: info@noblemineralexploration.com
Investor Relations
Phone: 416-214-2250
eMail: ir@noblemineralexploration.com
SOURCE: Noble Mineral Exploration Inc.
mailto:info@noblemineralexploration.com
mailto:ir@noblemineralexploration.com
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