Peru miner Volcan says prepays $100 mln loan

LIMA, June 16 (Reuters) - Peruvian miner Volcan VOLpb.LM said on Tuesday it was voluntarily prepaying $100 million of a syndicated loan, or half of a debt it took on last September, thanks to what it called strong fundamentals.

Volcan, a silver and zinc producer, said that, "Despite the global financial crisis, the company has managed to increase its ore reserves, meet its production programs and quickly adapt its cost structure."

It added that it has "solid liquidity, solvency and profitability ratios."

The company's production rose in the first quarter, though profits fell 50 percent to $28.1 million from the same period a year ago. (Reporting by Terry Wade; Editing by Christian Wiessner)