Silver Bear Announces Facilities Agreement Amendments – Including Interest Rate Reduction
September 18 2018 - 11:00AM
Silver Bear Resources Plc (“Silver Bear” or the “Company”) (TSX:
SBR) is pleased to announce that it has amended its existing
facilities agreement (the “Facilities Agreement”) with Inflection
Management Corporation Limited (“Inflection”), a major shareholder
of the Company, and Unifirm Limited, an affiliate of A.B. Aterra
Resources Ltd. (“Aterra”), also a major shareholder of the Company.
The amendments to the Facilities Agreement (the “Facilities
Agreement Amendments”): (i) provide for a new US$8 million term
loan facility tranche (“Tranche G”); (ii) extend the maturity dates
of the existing facilities drawn under the Facilities Agreement;
and (iii) reduce the interest payable on all funds drawn under the
Facilities Agreement from 15% to 10% per annum. The Facilities
Agreement Amendments have been conditionally approved by the
Toronto Stock Exchange. Full details of the Facilities Agreement
Amendments are set out below.
Graham Hill, President and Chief Executive
Officer, commented: “The addition of Tranche G to our existing
facilities agreement is an important step in the Company’s
advancement toward full commercial production. We would also like
to thank Inflection and Aterra, for agreeing to reduce the
facilities agreement interest rate from 15% to 10% per annum, which
is important to the overall economics of the project. The major
shareholders’ continued support of the Project has provided the
financial flexibility needed to achieve the Company’s planned
production schedule in the fourth quarter of this year.”
Facilities Agreement
Amendment
The Facilities Agreement Amendments: (i) provide
a new US$8 million Tranche G that will be made available to the
Company by Inflection in two sub-tranches, which are expected to be
used to fund the Company’s working capital requirements for the
remainder of 2018, and which will mature and become repayable on
July 31, 2021; (ii) extend the maturity date of the existing US$20
million tranche F term loan (“Tranche F”) from September 20, 2020
to September 20, 2022; (iii) extend the maturity date of the
facilities drawn under the Facilities Agreement, other than Tranche
F and Tranche G, from March 20, 2022 to March 20, 2023; and (iv)
reduce the interest rate applicable to all funds drawn under the
Facilities Agreement, as amended, from 15% to 10% per annum, which
reduction in interest rates will become effective immediately for
the remaining terms of the facilities drawn under the Facilities
Agreement.
The Facilities Agreement Amendments are a
“related party transaction” under Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions
(“MI 61-101”) because Inflection and Aterra are
related parties to the Company, as its major shareholders. Pursuant
to Section 5.7(f) of MI 61-101, the Company is exempt from
obtaining approval of the Company’s minority shareholders as a
result of the Facilities Agreement Amendments being an amendment to
a loan to the Company (obtained from a related party on reasonable
commercial terms that are not less advantageous to the Company than
if such credit facility was obtained through an arm’s length
lender) that has no equity or voting component. The Company will
file a material change report in respect of the Facilities
Agreement Amendments. However, the material change report will be
filed less than 21 days prior to the implementation of the
Facilities Agreement Amendments, which is consistent with market
practice and the Company deems reasonable in the circumstances.
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 filed an updated Feasibility Study in August
2017. Project construction and permitting is advancing with first
silver production has begun in late 2Q 2018. Other information
relating to Silver Bear are available on SEDAR at www.sedar.com as
well as on the Company’s website at
www.silverbearresources.com.
Cautionary Notes
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, the Company 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 risk factors identified by the Company 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 the Company’s actual results, events, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although the Company 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 the Company assumes no obligation to update or revise
them to reflect new events or circumstances, unless otherwise
required by law.
Contact
Information:
Graham
HillPresident and Chief Executive OfficerT: +7 916 731
5673info@silverbearresources.com Buchanan UK
Bobby Morse T: + 44 (0) 20 7466 5000 |
Judith
WebsterInvestor Relations Manager & Corporate SecretaryT: +416
453 8818jwebster@silverbearresources.com |
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