TORONTO, ONTARIO--(Marketwired - Jan. 13, 2016) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) is pleased to announce that it has closed the previously announced private placement (the "Private Placement") of a non-convertible promissory note by issuing a non-convertible promissory note in the principal amount of C$3,300,000 (the "Inflection Note") to one of the Company's major shareholders, Inflection Management Corporation ("Inflection").
Silver Bear's CEO, Graham Hill commented:
"We are very pleased to complete this transaction, and are also
appreciative to have such supportive shareholders that allow the Company
to maintain its development momentum, while negotiating our final
project financing options. At this time the accelerated construction and
mine plan for the Vertikalny deposit is progressing well and we are
confident that the Company is in the position to meet its target of
commissioning silver production by the second half of 2016."
The Company sought and obtained minority and disinterested shareholder approvals at a special meeting of the Company held on January 11, 2016 (the "Special Meeting") for the issuance of the Inflection Note as required by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the TSX Company Manual (the "Manual"). The Inflection Note bears interest at a rate of 15% per annum until its maturity on December 31, 2016
and is non-convertible. The Private Placement was conducted on a
non-brokered basis. No fee is payable by the Company in respect of the
issuance of securities under the Private Placement.
At the Special Meeting, the Company also obtained
minority and disinterested shareholder approvals, as required under MI
61-101 and the Manual, for the payment of interest on and conversion
into common shares of the Corporation ("
Common Shares") of certain consolidated contingent convertible notes (the "Consolidated Contingent Convertible Notes") in the aggregate principal amounts of C$12,350,769.86 and C$5,669,806.85 previously issued by the Company to Inflection and A.B. Aterra Resources Ltd., respectively, on December 4, 2015. The Consolidated Contingent Convertible Notes will now bear interest at a rate of 15% per annum and mature on December 31, 2016.
All interest accrued under the Consolidated Contingent Convertible
Notes will be convertible into Common Shares on the same terms as the
For details of the Private Placement and the
Consolidated Contingent Convertible Notes, please see Silver Bear's
management information circular dated
December 7, 2015 and Silver Bear's press release dated December 4, 2015, both of which have been filed on the Company's profile on SEDAR at www.sedar.com.
In addition, the Company is pleased to provide an
update with respect to the developments of its Mangazeisky silver
project located in Yakutia,
Recent financing activities continue to support the Company's
procurement activity in 2016, building on the infrastructural
construction and development work that was completed on-site during the
2015 field season. Along with the orders for vital long-lead equipment
announced in the second half of 2015, the Company recently placed and
confirmed contracts and orders, to meet its winter road delivery
- Two additional mining front end loaders to support the existing fleet;
- Primary and secondary crushing and screening plant which will also help with production of aggregates for civil works;
- Fabricated plant building steelwork;
- Complete set of leach tanks and agitators with supporting steelwork;
- Main power generation plant;
- Plant motor control centres (MCC's) and associated switchgear;
- Additional 1,000 m3 fuel storage facility;
- Tailings thickener and flocculent mixing facility; and
- Complete reagent mixing and storage facility.
Work on the Project development is proceeding
according to plan, with the team maintaining the very tight scheduled.
The Company is also expecting the first delivery of the ball mill
mid-January for deliver to site by early winter convoys. Currently the
Company and its subsidiary ZAO Prognoz are working closely with the
detailed planning for logistics, mobilisation of materials and
contractors along with construction planning for the 2016 project
Planning of ongoing exploration work based on the
successful results obtained in 2015 and focussed on both upgrading of
existing mineral resources and the development of new mineral resources
is well advanced with new drill rigs and greater productivity
Further to the Company's announcement on July 20, 2015 regarding certain forthcoming Chairman changes, the Company is pleased to announce that effective January 12, 2016, Mr. Christopher Westdal, an independent director of Silver Bear, has been appointed non-executive Chairman of the Company. Mr. Westdal replaces Mr. Robin Birchall
who has resigned as Executive Chairman to devote more time to his other
business interests. Mr. Birchall will remain on the board of directors
of the Company.
Mr. Birchall commented: "Over my tenure as
Executive Chairman, I have worked tirelessly to ensure the advancement
of Silver Bear and it is with some sadness that I step down due to the
pressures of my other projects. I would like thank the whole Silver Bear
team for their hard work this past year, in particular with regards to
the advancement of the Mangazeisky silver project, which is a credit to
our new President and CEO,
Graham Hill, and the operating team in Yakutia, Russia.
Under Graham's leadership, the Company has made significant progress in
a short period of time, and I believe the Company is now in a strong
operational position to pursue the goal of mine development and
commissioning by the second half of 2016."
About Silver Bear
Silver Bear (TSX:SBR) is focused on the development of its wholly-owned Mangazeisky Silver Project,
covering a licence area of ~570 sq. km that includes the high grade
Vertikalny deposit (amongst the highest grade silver deposits in the
world) located 400 km north of Yakutsk in the
Republic of Sakha (Yakutia) within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September 2013 and completed a Preliminary Economic Assessment in February 2014. Other information relating to Silver Bear is available on SEDAR at 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 risk factors include, but are not
limited, to the possibility that we have to allocate proceeds to other
uses or reallocate proceeds significantly differently among the
anticipated uses, and to risk 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.
Investor Relations Manager
416 453 email@example.com