TORONTO, ONTARIO--(Marketwired - March 2, 2015) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) announces that it has entered into unsecured non-convertible promissory notes with FrontDeal Limited ("FrontDeal") and with Inflection Management Corporation ("Inflection"), pursuant to which FrontDeal and Inflection have each agreed to lend the Company USD$3,500,000 respectively for a total of USD$7,000,000.
Amounts outstanding under the promissory notes will incur interest at a
rate of 15% per year and the principal and interest payable thereon
will mature on
June 27, 2015.
Silver Bear intends to use the proceeds of the
promissory notes to finance the further development of the Mangazeisky
project, which includes;
- The completion of the NI 43-101 Feasibility Study;
- Environmental and Social Impact Assessment Study;
- Russian Feasibility Studies, a key component of the Russian design and permitting process;
- the start of construction of new infrastructure
and purchase of construction materials as part of early project
- for general working capital purposes and ongoing exploration.
FrontDeal is indirectly wholly-owned by Alexey Mordashov, who is in turn a majority shareholder of Aterra Investments Limited,
an insider and related party to Silver Bear which holds more than 25%
of the issued and outstanding common shares of Silver Bear. Inflection
is an insider and related party of Silver Bear which holds more than 25%
of the issued and outstanding common shares of Silver Bear. Mr.
a director of the Company is also a director of Inflection.
Accordingly, the transaction is considered a "related party" transaction
pursuant to Multilateral Instrument 61-101 ("MI 61-101"). The Company
is relying on the exemptions available under sections 5.4(1) and 5.7(f)
of MI 61-101 from the formal valuation and minority shareholder approval
requirements. Completion of the transaction remains subject to final
approval from the
Toronto Stock Exchange ("TSX"). The transaction was approved by the board of directors of Silver Bear with Mr. Alexey Sotskov and Mr. Boris Granovsky abstaining from participating in the vote.
Executive Chairman Robin Birchall
commented, "We are very pleased we have been able to complete this
transaction. We are also appreciative to have such supportive
shareholders and will continue to work closely with them to further the
development of the project. The Company is now well positioned, to allow
the CEO to continue the process of ordering key supplies and equipment
for the project for delivery during the winter haulage season. We
continue to work with our existing shareholders as well as seeking
funding from new shareholders to continue to finance the development of
the Mangazeisky project."
Silver Bear Resources Inc.
The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation.
The Company's principal focus is the Mangazeisky exploration lease and
the Vertikalny Deposit, over which Silver Bear has exclusive
exploration/mining rights. It is located approximately 400 kilometres
north of Yakutsk in the
Republic of Sakha, Yakutia in the Russian Federation.
Silver Bear Resources Inc.
is listed on the TSX and its common shares trade under the ticker
symbol "SBR". Silver Bear has 161,089,517 issued and outstanding common
shares. Other information relating to Silver Bear is available on SEDAR
www.sedar.com as well as on the Company's website at www.silverbearresources.com.
This release and subsequent oral statements made by
and on behalf of the Company may contain forward-looking statements,
which reflect management's expectations. Wherever possible, words such
as "intends", "expects", "scheduled", "estimates", "anticipates",
"believes" and similar expressions or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved, have been used to identify these forward-looking
statements. Although the forward-looking statements contained in this
release reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, Silver Bear cannot be certain
that actual results will be consistent with these forward-looking
statements. A number of factors could cause events and achievements to
differ materially from the results expressed or implied in the
forward-looking statements. Such risks factors include but are not
limited to risks factors identified by Silver Bear in its continuous
disclosure filings filed from time to time on SEDAR. These factors
should be considered carefully and prospective investors should not
place undue reliance on the forward-looking statements. Forward-looking
statements necessarily involve significant known and unknown risks,
assumptions and uncertainties that may cause Silver Bear's actual
results, events, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements. Although
Silver Bear has attempted to identify important risks and factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors and risks that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, prospective investors should not place undue
reliance on forward-looking statements. These forward-looking statements
are made as of the date of this release, and Silver Bear assumes no
obligation to update or revise them to reflect new events or
circumstances, unless otherwise required by law.
Silver Bear Resources Inc.
President and Chief Executive Officer
UK+44 755 2524 firstname.lastname@example.orgSilver Bear Resources Inc.
UK+44 771 131 3019Silver Bear Resources Inc.
Investor Relations Manager
+416 453 8818www.silverbearresources.com