VANCOUVER,
BC – July 12, 2013 ¨C SilverCrest Mines Inc. (the ¡°Company¡±) announces that
it has entered into a three year US$40 million secured corporate credit
facility (the ¡°Facility¡±) with The Bank of Nova Scotia (¡°Scotiabank¡±).
The credit limit available under the Facility will reduce by US$10 million on
each of July 11, 2014 and July 11, 2015, and will mature on July 11, 2016,
subject to a one year extension of these dates by mutual agreement. The
Facility is to be used for general corporate purposes and to complete the Santa
Elena Mine Expansion (¡°Expansion¡±) which will release operational cash flow for
other corporate purposes. The Expansion at Santa Elena includes
development of the underground mine and a new 3,000 tonnes per day processing
plant. The Facility is principally secured by a pledge of the Company¡¯s
equity interests in its material subsidiaries, including Nusantara de Mexico
S.A. de C.V., and SilverCrest de Mexico S.A. de C.V., and their assets.
Depending on the Company¡¯s total indebtedness to EBITDA ratio, the interest
rate margin on the Facility will, at the Company¡¯s election, range from either
3.00% to 4.25% over LIBOR, or 2.00% to 3.25% over Scotiabank¡¯s Base Rate in
Canada. The availability of the Facility is subject to customary conditions
precedent and qualitative and quantitative covenants and the release of
existing security held by Macquarie Bank Limited. Until all security for
the Facility has been registered in Mexico, the amount available under the
Facility will be limited to US$15 million.
As a result
of the increase in metal production afforded by the Expansion, the Santa Elena
Mine is expected to generate additional operating cash-flow once the new plant
is fully-operational in the first half of 2014. This increase in cash flow
should enable the Company to continue funding its capital and exploration
projects from operating cash flow.
J. Scott
Drever, Chairman and CEO stated: ¡°We are pleased to establish this relationship
with an institution of the calibre of Scotiabank. At current precious
metals prices, we are confident that our financial situation will enable us to
complete the major capital expenditures associated with the Santa Elena
Expansion. This Facility strengthens our overall financial position and will
free up cash flow to enable us to pursue other corporate opportunities for
growth.¡±
SilverCrest
Mines Inc. (TSX©\V: SVL; NYSE MKT: SVLC) is a Canadian precious metals
producer headquartered in Vancouver, BC. SilverCrest¡¯s flagship property is the
100%©\owned Santa Elena Mine, located 150 km northeast of Hermosillo, near
Banamichi in the State of Sonora, M¨¦xico. The mine is a high©\grade, epithermal
silver and gold producer, with an estimated life of mine cash cost of US$8 per
ounce of silver equivalent (55:1 Ag: Au). SilverCrest anticipates that the
2,500 tonnes per day open pit heap leach facility at the Santa Elena mine
should recover approximately 625,000 ounces of silver and 33,000 ounces of gold
in 2013. Major expansion and construction of a 3000 tonnes per day conventional
mill facility is underway to significantly increase metals production at the
Santa Elena Mine (open pit and underground) by 2014. Exploration programs
continue to make new discoveries at Santa Elena and also have rapidly advanced
the definition of a large polymetallic deposit at the La Joya property in
Durango State with stated resources nearing 200 million ounces of Ag
equivalent.
FORWARD-LOOKING
STATEMENTS
This news release contains ¡°forward-looking statements¡± within the meaning
of Canadian securities legislation and the United States Securities Litigation
Reform Act of 1995. Such forward-looking statements concern the Company¡¯s
anticipated results and developments in the Company¡¯s operations in future
periods, planned exploration and development of its properties, plans related
to its business and other matters that may occur in the future. These
statements relate to analyses and other information that are based on
expectations of future performance, including silver and gold production and
planned work programs. Statements concerning reserves and mineral resource
estimates may also constitute forward-looking statements to the extent that
they involve estimates of the mineralization that will be encountered if the
property is developed and, in the case of mineral reserves, such statements
reflect the conclusion based on certain assumptions that the mineral deposit
can be economically exploited.
Forward-looking
statements are subject to a variety of known and unknown risks, uncertainties
and other factors which could cause actual events or results to differ from
those expressed or implied by the forward-looking statements, including,
without limitation: risks related to precious and base metal price
fluctuations; risks related to fluctuations in the currency markets
(particularly the Mexican peso, Canadian dollar and United States dollar);
risks related to the inherently dangerous activity of mining, including
conditions or events beyond our control, and operating or technical
difficulties in mineral exploration, development and mining activities;
uncertainty in the Company¡¯s ability to raise financing and fund the
exploration and development of its mineral properties; uncertainty as to actual
capital costs, operating costs, production and economic returns, and
uncertainty that development activities will result in profitable mining
operations; risks related to reserves and mineral resource figures being
estimates based on interpretations and assumptions which may result in less
mineral production under actual conditions than is currently estimated and to
diminishing quantities or grades of mineral reserves as properties are mined;
risks related to governmental regulations and obtaining necessary licenses and
permits; risks related to the business being subject to environmental laws and
regulations which may increase costs of doing business and restrict our
operations; risks related to mineral properties being subject to prior
unregistered agreements, transfers, or claims and other defects in title; risks
relating to inadequate insurance or inability to obtain insurance; risks
related to potential litigation; risks related to the global economy; risks related
to the Company¡¯s status as a foreign private issuer in the United States; risks
related to all of the Company¡¯s properties being located in Mexico and El
Salvador, including political, economic, social and regulatory instability; and
risks related to officers and directors becoming associated with other natural
resource companies which may give rise to conflicts of interests.Should one or
more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in the forward-looking statements. The Company¡¯s
forward-looking statements are based on beliefs, expectations and opinions of
management on the date the statements are made. For the reasons set forth
above, investors should not place undue reliance on forward-looking statements.
The
information provided in this news release is not intended to be a comprehensive
review of all matters and developments concerning the Company. It should be
read in conjunction with all other disclosure documents of the Company. The
information contained herein is not a substitute for detailed investigation or
analysis. No securities commission or regulatory authority has reviewed the
accuracy or adequacy of the information presented.
¡°J.
Scott Drever¡±
J. Scott
Drever, Chairman and CEO
SILVERCREST MINES INC.
Contact:
Fred Cooper
Telephone:
(604) 694-1730 ext. 108
Fax: (604)
694-1761
Toll Free:
1-866-691-1730
Email:
[email protected]
Website:
www.silvercrestmines.com
Suite 501 –
570 Granville Street
Vancouver,
BC Canada V6C 3P1
Neither TSX
Venture Exchange nor its Regulation Services Provider (as defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
