February 1, 2017 – Toronto, Ontario – Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX: SBR) provides an update on the Mangazeisky Silver Project (the "Project") and announces certain agreements in principle with its major shareholders, A.B. Aterra Resources Ltd. ("Aterra") and Inflection Management Corporation Limited ("Inflection").
Financial and Operational Update
Silver Bear, Aterra and Inflection have principally agreed a revised funding package and development schedule to increase the Company’s financial flexibility and enable it to reach commissioning in mid-2017. The Company will announce a proposed date for production once permitting and commissioning is completed.
The Facilities Agreement Increase and Note Extension are subject to the approval of the Toronto Stock Exchange (“TSX”), and potentially to shareholder approval. The parties will now work to settle definitive agreements with respect to the Facilities Agreement Increase and Note Extension.
Silver Bear’s CEO, Graham Hill commented: “I am very proud of our team and what they have accomplished over the past year, despite challenges faced with the early onset of winter hindering supply logistics. After deliberation, it has been agreed that the best strategy is to reschedule the project commissioning several months to June 2017, as this ensures that construction and permitting are fully completed for production ramp-up. In addition, I want to thank our major shareholders for their continued support, and in principle agreements to modify their existing facilities and loan notes to ensure that the Company’s transition into production can be achieved within a manageable timeframe.”
The Company also announces today that the contract of Derk Hartman, Chief Financial Officer (“CFO”), has, by mutual agreement, not been extended and that Mr. Hartman now intends to leave the company to pursue other opportunities once a suitable replacement has been found.
Mr. Hartman has agreed to remain with the Company in his current role until June 30, 2017 in order to ensure a smooth transition following the search and appointment of his replacement.
Silver Bear’s CEO, Graham Hill commented, “We greatly appreciate Derk’s contribution to Silver Bear over the past two years. The Company has benefited from Derk’s expertise and commitment in navigating the transition from exploration through to project construction and driving the Company’s organisational changes. While we are saddened to see Derk go, we wish him continued success in the next phase of his career. Silver Bear will make an announcement on appointment of a suitable replacement.”
About Silver Bear
Silver Bear (TSX: SBR) is focused on the development of its wholly-owned Mangazeisky Silver Project, covering a licence area of approximately 570 km2 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 within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September 2013 and recently updated its Feasibility Study in Q4 2016. 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. Forward-looking statements in this press release include statements regarding the successful completion of negotiations with Aterra and Inflection regarding a convertible note restructuring the timing and terms of a new financing process for the Company and the anticipated dates of commissioning of and full production of the Project. 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 necessary TSX or shareholder approvals are not received or other conditions to completion are not satisfied, lack of investor demand, delays in the commissioning of the Project and the Company’s ability to achieve full production at the Project,, 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.
President and Chief Executive Officer
T: +7 916 731 5673
Bobby Morse T: + 44 (0) 20 7466 5000
Anna Michniewicz T: +44(0) 20 7466 5146
Investor Relations Manager & Corporate Secretary
T: +416 453 8818