Capstone Mining Takes Action to Protect Covenant Compliance

Click to access article_03092016063253.pdf

VANCOUVER, March 9, 2016 /CNW/ – Capstone Mining Corp. (“Capstone”) (TSX: CS) today announced that it has taken steps to support covenant compliance on its Revolving Credit Facility (“RCF”) throughout 2016 at copper prices as low as US$1.60 per pound in the first half of the year and US$1.70 per pound in the second half.

Actions taken include price fixing over 90% of the copper that had been sold in Q4 2015 with open copper pricing periods at December 31, 2015, at US$2.13 per pound of copper, eliminating the risk of a material negative pricing adjustment to Q1 2016 revenue; price fixing and hedging approximately 75% of Q1 2016 expected sales at US$2.20 per pound of copper; and hedging 90% of expected Q2 2016 sales at US$2.24 per pound of copper.

 

Leave a Reply