Silver Bear Receives Certificate of First Discovery From Russian Authorities With Respect to Its Mining Licence and Announces Second Quarter 2012 Results
TORONTO, ONTARIO -- (Marketwire) -- 08/14/12 -- Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX: SBR) is pleased to announce that it has obtained its Certificate of First Discovery from the Federal Russian Authorities. This is a significant milestone for the Company, as receipt of the Certificate allows Silver Bear to now file a formal application for a mining license on its Vertikalny deposit located in Yakutia, Russia. As set out in the National Instrument 43-101 compliant technical report dated September 2011, the Vertikalny deposit contains a mineral resource estimate of 1.1 million tonnes containing 17.9 million ounces silver at 518 Ag/t of 'Indicated' mineralization and 1.7 million tonnes containing 30.5 million ounces silver at 562 g/t Ag of 'Inferred' mineralization (See Press Release dated September 28, 2011). This technical report is available on the Company's SEDAR profile at www.sedar.com.
The Company will be making application for its Mining License in the coming days. In addition, the Company has made an application for an exploration licence extension for the prospective areas outside of the Vertikalny resource (See Press Release dated August 8, 2012). Currently, this licence is set to expire on December 31, 2012 and the Company will seek the necessary extension to continue exploration on these prospective areas outside of the defined resource area.
Commenting on this latest milestone achievement, Mark Trevisiol, President and CEO said, "This represents a significant move forward on our licensing efforts in Russia and reflects the dedicated efforts of our team in Russia and Toronto to secure this positive outcome. The granting of the certificate further supports efforts with Russian authorities to approve our exploration license extension for the areas outside of the Vertikalny resource. Management of the Company believes that these developments build significant momentum for Silver Bear on the licensing front."
Net Loss
Silver Bear incurred a net loss for the six-month period ended June 30, 2012 of $6.44 million, or $0.14 per share. This compares to a loss of $2.01 million or $0.05 per share for the six-month period ended June 30, 2011.
As previously discussed, exploration costs were $4.38 million in the six-month period ended June 30, 2012 compared with $0.78 million for six-months period ended June 30, 2011, as a result of preparation for the summer drilling program. General and administrative expenses for the six-month period ended June 30, 2012 were $1.29 million compared with $0.75 million in the prior year, as the Company expands its management team and investor relations activities. Non-cash items for the six-month period ended June 30, 2012 were $0.67 million compared with $0.54 million in six months ended June 30, 2011. Interest income for the six-month period ended June 30, 2012 was $0.01 million compared with $0.06 million in the prior year.
Silver Bear incurred a net loss for the three-month period ended June 30, 2012 of $4.11 million, or $0.08 per share. This compares to a loss of $1.16 million or $0.03 per share for the three-month period ended June 30, 2011.
Exploration costs were $3.00 million in the three-month period ended June 30, 2012 compared with $0.48 million for three-months ended June 30, 2011, as a result of the summer drilling program. General and administrative expenses for the three-month period ended June 30, 2012 were $0.64 million compared with $0.44 million in the prior year, as the Company expands its management team and investor relations activities. Non-cash items for the three-month period ended June 30, 2012 were $0.38 million compared with $0.28 million in three months ended June 30, 2011. Interest income for the three-month period ended June 30, 2012 was insignificant compared with $0.03 million in the prior year.
Liquidity and Capital Resources
At June 30, 2012, Silver Bear had cash and cash equivalents of $0.84 million. The Company has total obligations of $0.57 million under a three year finance lease of exploration equipment. Additional funding is expected to be required.
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Financial Position
(Canadian dollars)
(Unaudited)
June 30, 2012 December 31, 2011
----------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents 839,440 4,282,883
Receivable 882,345 714,033
Inventories 1,836,611 573,727
Prepaid expenses 343,030 210,433
----------------------------------------------------------------------------
Total current assets 3,901,426 5,781,076
----------------------------------------------------------------------------
Non-current assets
Mineral property 1,206,823 1,212,964
Property, plant and equipment 2,105,838 636,008
----------------------------------------------------------------------------
Total assets 7,214,087 7,630,048
----------------------------------------------------------------------------
LIABILITIES
Current liabilities
Accounts payable and accrued
liabilities 1,010,469 617,446
Finance lease 226,592 -
----------------------------------------------------------------------------
Total current liabilities 1,237,061 617,446
----------------------------------------------------------------------------
Non-current liabilities
Asset retirement obligation 576,363 579,478
Finance lease 339,177 -
----------------------------------------------------------------------------
Total liabilities 2,152,601 1,196,924
----------------------------------------------------------------------------
EQUITY
Equity attributable to owners of
Silver Bear Resources Inc.
Capital Stock 83,135,711 78,730,574
Contributed surplus 10,901,960 10,081,156
Accumulated other comprehensive
loss (656,704) (497,307)
Deficit (88,319,481) (81,881,299)
----------------------------------------------------------------------------
Total equity 5,061,486 6,433,124
----------------------------------------------------------------------------
Total liabilities and
shareholders' equity 7,214,087 7,630,048
----------------------------------------------------------------------------
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Loss and Comprehensive Loss
For the three and six months ended June 30, 2012 and 2011
(Canadian dollars)
(Unaudited)
For the three months For the six months
ended ended
----------------------------------------------------------------------------
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
----------------------------------------------------------------------------
Income
Interest income 2,577 31,760 8,301 57,123
----------------------------------------------------------------------------
2,577 31,760 8,301 57,123
----------------------------------------------------------------------------
Expenses
Exploration costs 3,005,295 475,504 4,378,830 781,323
General and administrative 644,140 441,724 1,294,598 747,501
Depreciation 95,226 106,455 116,810 268,015
Share-based payments 287,913 167,809 556,550 264,713
Accretion expense - 2,297 - 4,536
Interest expense 22,400 - 22,400 -
Foreign exchange loss 58,723 2,023 77,295 4,294
----------------------------------------------------------------------------
Expenses from operations 4,113,697 1,195,812 6,446,483 2,070,382
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net loss for the period (4,111,120) (1,164,052) (6,438,182) (2,013,259)
----------------------------------------------------------------------------
Other comprehensive income
Exchange differences on
translating foreign
operations (445,765) (36,990) (159,397) 135,370
----------------------------------------------------------------------------
Comprehensive loss for the
period (4,556,885) (1,201,042) (6,597,579) (1,877,889)
----------------------------------------------------------------------------
Weighted average number of
common shares outstanding 49,465,389 39,461,699 47,219,261 38,710,379
----------------------------------------------------------------------------
Basic and diluted loss per
share (0.08) (0.03) (0.14) (0.05)
----------------------------------------------------------------------------
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Changes in Equity
For the three and six months ended June 30, 2012 and 2011
(Canadian dollars)
(Unaudited)
Attributable to equity owners of Silver Bear Resources Inc.
-----------------------------------------------------------
Accumu-
lated
other
Contri- compre-
Share buted hensive Total
capital surplus loss Deficit equity
----------------------------------------------------------------------------
Balance -
December 31,
2010 73,771,289 9,166,433 (211,508) (69,356,972) 13,369,242
Net loss for the
period - - - (2,013,259) (2,013,259)
Other
comprehensive
income (net of
tax):
Cumulative
translation
adjustment - - 135,370 - 135,370
----------------------------------------------------------------------------
Comprehensive
income (loss)
for the period - - 135,370 (2,013,259) (1,877,889)
Share based
payments - 264,713 - - 264,713
Options
exercised 8,234 (4,034) - - 4,200
Net proceeds
from issuance
shares in
private
placement 4,949,225 - - - 4,949,225
----------------------------------------------------------------------------
Balance - June
30, 2011 78,728,748 9,427,112 (76,138) (71,370,231) 16,709,491
----------------------------------------------------------------------------
Balance -
December 31,
2011 78,730,574 10,081,156 (497,307) (81,881,299) 6,433,124
Net loss for the
period - - - (6,438,182) (6,438,182)
Other
comprehensive
income (net of
tax):
Cumulative
translation
adjustment - - (159,397) - (159,397)
----------------------------------------------------------------------------
Comprehensive
income (loss)
for the period - - (159,397) (6,438,182) (6,597,579)
Share based
payments - 556,550 - - 556,550
Options
exercised -
Net proceeds
from issuance
shares in
private
placement 4,405,137 - - - 4,405,137
Warrants - 264,254 - - 264,254
----------------------------------------------------------------------------
Balance - June
30, 2012 83,135,711 10,901,960 (656,704) (88,319,481) 5,061,486
----------------------------------------------------------------------------
Mark Trevisiol, P.Eng, President and CEO of Silver Bear, is the Company's designated qualified person under National Instrument 43-101 and has reviewed and approved the scientific and technical information in this press release.
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.
Forward-Looking Information
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.
Contacts:
Silver Bear Resources Inc.
Dominique Vaillancourt
Manager, Investor Relations
416-309-4397
dvaillancourt@silverbearresources.com
Silver Bear Resources Inc.
Mark Trevisiol
President and Chief Executive Officer
416-309-2131
mtrevisiol@silverbearresources.com
www.silverbearresources.com