Silver Bear Resources Announces New Loan Agreement
TORONTO / February 4, 2021 / Business Wire / Silver Bear Resources Plc (âSilver Bearâ or the âCompanyâ) (TSX: SBR) announces that the Company’s wholly owned subsidiary, the joint stock company Prognoz, has entered into a loan agreement with SKA Assets, Moscow branch for a loan of ‘an amount of 750,000,000 rubles (equivalent to approximately CAD $ 12,000,000) (the’Principlel “) with an interest rate of 8.27% per annum, which interest will accrue on a monthly basis (the”SKA asset loan agreement“). The Principal will be due and payable on December 31, 2021.
SKA Asset Lending Agreement has been conditionally approved by the Toronto Stock Exchange (“TSX”). SKA Assets is indirectly owned by Sergey Kolesnikov, who in turn is the majority shareholder of Inflection Management Corporation (âInflectionâ), a majority shareholder of Silver Bear.
Vadim Ilchuk, President and CEO, said: âWe thank Inflection for their continued support of the Mangazeisky Silver Project. The SKA Asset Loan provides the company with bridge financing to help the company consolidate its cash position in anticipation of the upcoming intensive winter road purchase campaign and complete the flotation upgrade to handle the primary sulphide ores as the Company prepares to mine the deeper pit and then move to Mangazeisky North which consists primarily of refractory ores, as well as other underground developments at Vertikalny and other deposits the Company may discover in the region. During this time, the Company will continue to explore the contiguous potential silver and gold resources.
The SKA Asset Lending Agreement is a ârelated party transactionâ under Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101â) Because Inflection is a related party of the Company, as the principal shareholder. Pursuant to section 5.7 (1) (f) of NI 61-101, the Company is exempt from obtaining minority shareholder approval for the SKA asset loan agreement by virtue of obtaining the loan from a party linked to reasonable commercial terms which are no less advantageous for the Company than if such a loan had been obtained through an arm’s length lender and having neither equity nor voting rights . The Company will file a material change report with respect to the SKA Asset Loan Agreement. However, the material change report will be filed less than 21 days prior to the signing of the SKA Asset Lending Agreement, which is in line with market practice and the Company considers reasonable in the circumstances.
About the silver bear
Silver Bear (TSX: SBR) focuses on the development of its wholly owned Mangazeisky Silver project, covering a license area of ââapproximately 570 km2 which includes the high-grade Vertikalny deposit (among the richest silver deposits in the world), located 400 km north of Yakutsk in the Republic of Sakha within the Russian Federation. In April 2018, the Company reached first silver production following commissioning activities and on July 1, 2019, the Company reached full commercial production. Additional 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 press release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect the expectations of management. To the extent possible, words such as “consider”, “expect”, “planned”, “estimate”, “foresee”, “estimate” and similar expressions or statements that certain actions, events or results ” could “,” could “,” “would”, “could” or “will” be made, occur or be made, have been used to identify such forward-looking statements. Although the forward-looking statements contained in this press release reflect current beliefs management Based on information currently available to management and what management considers reasonable assumptions, the Company cannot be certain that actual results will be consistent with these forward-looking statements. factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These risk factors include, Without limitation, the risk factors identified by the Company in its continuous disclosure documents filed from time to time on SEDAR. These factors should be carefully considered and potential investors should not place undue reliance on 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 significant 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 are not as expected, estimated or foreseen. 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. Therefore, potential investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.