12:31 | Lima, Nov. 07 (ANDINA).
Bear Creek Mining Corp. has closed its bought deal short form prospectus financing (the offering) through a syndicate of underwriters led by BMO Capital Markets and including Canaccord Genuity Corp., Paradigm Capital Inc., Haywood Securities Inc., Raymond James Ltd., Cormark Securities Inc. and Scotia Capital Inc.
The company issued 17,650,000 common shares (the common shares) at a price of $6.40 per Common Share for gross proceeds of $112,960,000.
The underwriters also exercised their over-allotment option to acquire an additional 2,647,500 Common Shares for additional gross proceeds of $16,944,000.
Including the proceeds from the exercise of the over-allotment option, the total gross proceeds of the Offering were $129,904,000. The underwriters received a cash fee equal to 5% of the gross proceeds of the Offering.
The company intends to use the net proceeds from the Offering to fund the development of the company's Santa Ana project in Peru, to make property payments under the company's Corani project in Peru and for general working capital and other corporate purposes.
According to Bear Creek Mining, this press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States in which such offer, solicitation or sale would be unlawful.
The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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 4.6 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.
Bear Creek, active in Peru since 2000, maintains exploration programs to expand resources at its two principal projects and make new precious metals discoveries. The Company is led by a management team with a strong track record of mineral discovery and mine development in Peru.
(END) EEP
Publicado: 7/11/2010