TORONTO, ONTARIO--(Marketwired - May 13, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
Silver Bear Resources Inc. ("Silver Bear" or the "Company")
(TSX:SBR) is pleased to announce that it intends to complete a private
placement financing of up to 16,666,666 units ("Units") at a price of
$0.18 per Unit for gross proceeds in the amount of up to $3,000,000 (the "Offering"). Each Unit shall consist of one common share of the Company (a
"Common Share") and one-half of one common share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant will entitle the holder
thereof to acquire a Common Share at the exercise price of
$0.33 per share for a period of up to 36 months following the closing of the Offering.
The Company intends to use the gross proceeds of the Offering to finance its exploration program and Feasibility Study for the Mangazeisky Silver Project, to repay debt and supplement general working capital.
Pursuant to Section 607(g)(i) of the TSX Company
Manual, the TSX will require the Company to obtain security holder
approval for the Offering in the event that the aggregate number of
common shares issuable pursuant to the Offering is greater than 25% of
the number of common shares of the Company which will be outstanding, on
a non-diluted basis, prior to the date of closing of the Financing.
Accordingly, in the event that the Company enters into subscription
agreements for more than 8,977,717 Units, it is anticipated that the
Offering will close in two tranches with the second tranche, being those
subscriptions in excess of 8,977,717 units completed by way of a
subscription receipt financing.
The Common Shares, the Warrants, and the shares
issuable upon the exercise of the Warrants, are subject to statutory
resale restrictions for a period of four months and one day following
closing of the Offering. Closing of the Offering is expected to occur on
May 17, 2013 and remains subject to receipt of
regulatory approval, including final approval of the TSX and shareholder
approval, as applicable with respect to any portion in excess of 25% of
the current issued and outstanding shares of the Company on a
Focus for the summer exploration program will be
drilling and trenching high-grade near-surface Silver mineralization on
the company's Mangazeisky property in Yakutia,
At its Vertikalny deposit, the company plans infill diamond drilling of
its existing near-surface resource estimate prepared in accordance with
NI 43-101 with the intention of generating additional indicated
resources for feasibility study purposes (see latest Technical Report
January 14, 2013 filed on Sedar). Figure 1 is a
long section of the Vertikalny deposit which shows blocks of ore with
Silver grades above 1000 g/t Ag (shown in Red). From the figure it is
evident that a number of high-grade zones exist near-surface. The total
length of the ore section stretches approximately 1.7 km along strike.
The company plans similar work at 2 other prospects within its
Mangazeisky license area. Total amount of drilling will be approximately
3000 to 4000 meters and total trenching is expected in the 5000 cubic
meter range. The company aims to achieve 10 million ounces of high-grade
near-surface indicated resources from this summer's program.
Silver Bear is focused on proving up these
near-surface resources to support an "early start" production option.
The company's high-grade near-surface silver veins provide Silver Bear
an "early start" opportunity to produce 2 million ounces/yr of Silver
production using cost-effective open pit mining methods*.
The company continues to work with Russian
authorities on receiving its Mining license on its Vertikalny prospect.
The license application has received a technical review within Rosnedra
(Russian Federal Regulator of Natural Resources), and discussions are
continuing. Granting of a mining license will be a major achievement for
Silver Bear and a significant step towards building a mining and
processing plant at site. The company expects to receive its mining
license in the second half of this year.
During the first quarter, Silver Bear management accompanied Canadian Ambassador John Sloan and met with Yakutian President Egor Borisov in Yakutsk, Russia
for face-to-face discussions on the project. The Yakutian government
has been openly supportive of Silver Bear's project. Discussions
continue with the Yakutian government on such items as infrastructure
support (roads, power, airport) which, if improved, would benefit both
the local community and Silver Bear.
To view Figure 1, please visit http://media3.marketwire.com/docs/Figure-1_Long-Section.pdf.
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,
over which Silver Bear has exclusive exploration 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 Toronto Stock Exchange
and its common shares trade under the ticker symbol "SBR". Silver Bear
has 53,866,307 issued and outstanding common shares. 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.
Mark Trevisiol P.Eng, President and
CEO of Silver Bear and a qualified person under National Instrument
43-101 and has reviewed and approved the content of this press release.
*The ability of the Company to produce two
million ounces of silver per year has not been the subject of a
feasibility study and there is no certainty that the production rate or
any proposed expansion will be economically viable.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933 Act"), or
any state securities laws and may not be offered or sold within
the United States
or to, or for the account or benefit of U.S. persons (as defined in
Regulation S under the 1933 Act) absent such registration or an
applicable exemption from such registration requirements.
For further details, please visit www.silverbearresources.com.
Silver Bear Resources Inc.
President and Chief Executive Officer
+firstname.lastname@example.orgSilver Bear Resources Inc.
+44 771 131 3019www.silverbearresources.com