HONG KONG, Dec. 21 /PRNewswire-FirstCall/ -- Blue Earth Refineries Inc. ("Blue Earth") (Pink Sheets: BUERF) announced today that its Board of Directors (the "Board") has approved a payment of a special cash distribution in the amount of US $1.04 per share. The record date for shareholders entitled to receive the payment will be December 31, 2007. The payment date will be January 3, 2008. The distribution is a return of capital.
To partially finance the costs of the distribution and the unwinding of a prior forward sale, Blue Earth will use its working capital and has entered into a syndicated unpriced forward derivative contract, which allows for an initial payment of approximately US $23 million and further payments depending upon the price of cobalt.
The derivative contract will substantially limit Blue Earth from making further cash distributions in the near future unless prices for cobalt stay constant, the existing production levels remain the same and until the delivery of the cobalt has occurred to fulfill the forward derivative obligation.
With the extreme volatility and uncertainty of the market price of cobalt, the inherent production and delivery risks, the Board views this transaction as a way to help control its uncertain future and create value for its shareholders as of today.
While forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgement regarding the direction of our business, actual results will almost always vary, sometimes significantly, from any estimates, predictions, projections, assumptions or other future performance suggested herein.
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