Bear Creek completes final payment to Rio Tinto for 100% interest in the Corani silver-lead-zinc project
07.02.2011 | CNW
VANCOUVER, Feb. 7 /CNW/ - Bear Creek Mining (TSX Venture: BCM / BVL: BCM) ("Bear Creek" or the "Company") is pleased to announce that it has paid the entire obligation for its 100% interest in the Corani project early and at a discount of 8% for doing so. The final payment, totaling US$23M, is in lieu of payments of $10M due on Sept. 30, 2011 and $15M due on June 30, 2012. The $23M payment extinguishes all remaining security for the balance of the purchase price held by Rio Tinto including pledges shares of certain subsidiary companies, remaining security under a general security agreement and mortgages over the Corani project.Andrew Swarthout, Bear Creek CEO stated "We are pleased to have satisfied these future payment obligations releasing all encumbrances from the Corani Project and clearing the path for future project financing for mine development. In addition, as has been our history, we look forward to deploying the $2M saved towards expanding our aggressive 2011 exploration programs focused on the discovery of new precious metal ore bodies."
About Bear Creek:
Bear Creek is focused in Peru, a mineral-rich nation with a favorable investment climate. The Company has recently completed a Pre-Feasibility Study on its Corani Project and a Feasibility Study on its Santa Ana Project, which together estimate measured and indicated resources in excess of 500 million ounces of silver of which over 320 million ounces are in proven and probable reserves providing near-term production potential and excellent leverage to silver prices. The Feasibility Study for Santa Ana defines a low-cost "pure silver" mine producing 5 million ounces annually in the first six years of an estimated 11-year mine life. The Pre-Feasibility Study for the flagship Corani Project estimates average annual production of 10 million ounces for the first six years of an estimated 27-year mine life, with low cash costs and fast payback of capital costs. Santa Ana is proceeding towards permitting and construction while Corani is undergoing a Feasibility Study.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Andrew Swarthout - CEO, or
Patrick De Witt - Investor Relations
Phone: 604-685-6269, Direct: 604-628-1111
E-mail: info@bearcreekmining.com
For further information, please visit the Company's website
www.bearcreekmining.com