Noranda Income Fund Announces Special Distribution of 2020 Taxable Income

TORONTO, Dec. 18, 2020 (GLOBE NEWSWIRE) — Noranda Income Fund (TSX:NIF.UN) (the “Fund”) announced today that the Board of Trustees of Noranda Operating Trust (the “Board” or “Trustees”) has approved a special cash distribution of $0.03 per unit payable on January 25, 2021 to Priority and Ordinary Unitholders of record as at the close of business on December 31, 2020. This special cash distribution is based on the Fund’s 2020 unconsolidated taxable income calculated in accordance with the Fund’s Trust Indenture.All cash distributions to Unitholders must also be approved by the asset-based revolving credit facility lenders of the Fund and they have provided consent for this special distribution.The 2020 special distribution does not signal a return to regular recurring monthly distributions to Unitholders. On January 31, 2017, in light of the negative market conditions facing the Fund, the Board announced the suspension of future monthly distributions to Unitholders until further notice.When not restricted, and as may be considered appropriate by the Board, the Fund’s policy is to make monthly distributions to Unitholders equal to the distributable cash flows from operations, before variations in working capital and after permanent debt reductions and such reserves as may be considered appropriate by the Trustees. The Board continues to carefully monitor and review the Fund’s financial performance, business environment and prospects, appropriate levels of reserves and expected future cash flows in the context of making distributions to Unitholders in the future. There is no assurance that monthly distributions will resume in the future.Forward-Looking Information
Certain information in this press release, including statements regarding the Fund’s distributable cash flow from operations and distributions to Unitholders are forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Statements containing forward looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Fund’s Annual Information Form dated March 30, 2020 for the year ended December 31, 2019 and the Fund’s other periodic filings available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Fund; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Fund expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol “NIF.UN”. Noranda Income Fund owns the electrolytic zinc processing facility and ancillary assets (the “Processing Facility”) located in Salaberry-de-Valleyfield, Québec. The Processing Facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of zinc customers are located. It produces refined zinc metal and various by-products from sourced zinc concentrates. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly owned subsidiary of Glencore Canada Corporation.Further information about Noranda Income Fund can be found at
www.norandaincomefund.com.For further information, please contact:
Paul Einarson
Chief Financial Officer, Canadian Electrolytic Zinc Limited
Noranda Income Fund’s Manager
514-745-9380
info@norandaincomefund.com