VANCOUVER, Feb. 27 /CNW/ - Bear Creek Mining (TSX Venture: BCM) ("Bear
Creek" or the "Company") is very pleased to announce that it has entered into
an amendment agreement (the "Amendment Agreement") with Rio Tinto Mining and
Exploration Ltd. ("Rio Tinto") in respect of its purchase of Rio Tinto's
remaining 30% interest in the Corani silver and base-metals deposit as
disclosed in its news releases dated March 7, June 11, and July 17, 2008.
Under the Amendment Agreement, Rio Tinto has agreed to restructure the
final two cash payments of US$15 million previously due September 30th 2009
and US$25 million previously due December 31st, 2009. In consideration for
deferring the majority of these payments out several years, the purchase price
is increased by US$2.2 million to US$77.2 million, of which US$35million has
been paid. The restructured remaining payments are described below:
- US$5 million due December 31st , 2009
- US$10 million due December 31st , 2010
- US$10 million due September 30th, 2011
- US$15 million due June 30, 2012.
Bear Creek has agreed to make the following additional payments (payable
in cash or in shares (issuable at a 15% discount from then current market
prices) at the option of Bear Creek) in consideration for the restructuring:
- US$1.1 million upon signing of the amended agreement or as soon
thereafter as stock exchange acceptance is received; and
- US$1.1 million due on January 10, 2011.
The issuance of any such shares is subject to acceptance of the TSX
Venture Exchange and shares issued will be subject to applicable statutory
hold periods. Subject to stock exchange acceptance, Bear Creek intends to make
the first $1.1 million payment by the issue of 1,021,266 shares of Bear Creek.
Additionally, the Amendment Agreement removes the accelerated payment
condition upon change of control of Bear Creek and provides for the reduction
of the security for the balance of the price to security charging only the
Corani property once Bear Creek completes the next three payments totaling
US$16.1 million. A copy of the Amendment Agreement will be filed on SEDAR
under Bear Creek's profile at www.sedar.com.
Andrew Swarthout, CEO and President, stated "We are very pleased to have
been able to renegotiate these terms with Rio Tinto. The new terms allow Bear
Creek to focus on advancing its two major silver discoveries, Corani and Santa
Ana, through prefeasibility and scoping studies respectively without the need
for additional financing through the end of 2010. This will position Bear
Creek very favorably as precious metals prices increase and the completion of
ongoing feasibility work confirms the value of its two large silver deposits.
Importantly, the new payment structure also allows Bear Creek to continue its
exploration for additional precious metals discoveries. "
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Certain disclosure in this release, including management's assessment of
Bear Creek's plans and projects, constitutes forward-looking statements that
are subject to numerous risks, uncertainties and other factors relating to
Bear Creek's operation as a mineral exploration company that may cause future
results to differ materially from those expressed or implied in such
forward-looking statements. (*)Any reference to the potential quantity & grade
of mineralization at Corani is conceptual in nature, there has been
insufficient exploration to define a mineral resource on the property and it
is uncertain if further exploration will result in discovery of a mineral
resource on the property. Readers are cautioned not to place undue reliance on
forward-looking statements. Bear Creek expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise. Note: Bear Creek will
likely need to obtain further financing prior to year-end '08 to be able to
pay the balance of the purchase price in cash.
For further information:
For further information: Andrew Swarthout - President and CEO, or
Patrick De Witt - Investor Relations, Phone: (604) 685-6269, Direct: (604)
628-1111, E-mail: email@example.com; For further information, please
visit the Company's website (www.bearcreekmining.com)