Silver Bear Announces 2011 First Quarter Results and Announces Expanded 2011 Exploration Program

TORONTO, June 9, 2011 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX: SBR) today announces financial results for the quarter ended March 31, 2011, prepared in accordance with International Financial Reporting Standards ("IFRS").  All dollar amounts are stated in Canadian dollars unless otherwise indicated.

The Company is also pleased to announce that it has expanded its exploration program at its 100% owned Mangazeisky Project in Russia for 2011 to include a drilling program of 15,000 metres. In addition, Silver Bear will complete a Preliminary Economic Assessment at the Mangazeisky Project early in the third quarter of 2011, to assess the viability of advancing the Project towards production based on its current scale. Silver Bear has commissioned a Russian Feasibility Study and Russian reserve estimate, which will be submitted to Russian authorities in the fourth quarter of 2011 as part of the process of obtaining a mining license.  The Company is in continuing discussions with the Russian regulators to extend its current exploration license, which expires December 31, 2011.

"The Mangazeisky Project hosts an attractive silver deposit with significant exploration potential," stated Mark Trevisiol, President and Chief Executive Officer. "We are eager to get started on the expanded exploration program and to advance Mangazeisky through continued exploration towards development."

"Together with our newest members of the Board of Directors, Messrs. Stan Bharti and Mark Trevisiol, we are excited to move forward with the Project," added Randall Oliphant, Chairman.  "We welcome the new directors' and management team's involvement, and remain committed to creating substantial value for Silver Bear shareholders."

Financial Results

Silver Bear incurred a net loss for the period ended March 31, 2011 of $0.8 million, or $0.02 per share. This compares to a loss of $1.1 million or $0.03 per share for the period ended March 31, 2010. Exploration costs were $0.3 million in the period ended March 31, 2011 compared with $0.6 million in the period ended March 31, 2010. General and administrative expenses for the period ended March 31, 2011 were $0.3 million compared with $0.4 million in the prior period. Non-cash items for the period ended March 31, 2011 were $0.3 million compared with $0.2 million in the period ended March 31, 2010. Interest income for the period ended March 31, 2011 was $nil compared with $nil in the prior period.

Liquidity and Capital Resources

At March 31, 2011, Silver Bear had cash and cash equivalents of $10.7 million. The Company has no debt outstanding. Silver Bear has sufficient cash and cash equivalents to meet its near term objectives. Silver Bear has budgeted for 5,000 cubic metres of trenching and 15,000 metres of drilling in 2011 at a cost of $10.0 million with an additional $1.6 million of corporate costs. Including the proceeds from the May 11, 2011 private placement, cash and cash equivalents as of May 31, 2011 were $15.1 million.

Appointment of New Chief Financial Officer and New Head Office

Effective June 15, 2011, Ms. Deborah Battiston is to be appointed as Chief Financial Officer of the Company. Mr. Brian Penny, the current Chief Financial Officer, will resign as such, but will remain as advisor to the Company during the transition.

Also effective June 15, 2011, the head office of Silver Bear Resources will be relocated to:

65 Queen Street West
Suite 800, P.O. Box 71
Toronto, ON M5H 2M5

Silver Bear Resources Inc.

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal asset is its 100% owned Mangazeisky Project, 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 symbol "SBR". Silver Bear has 44,193,902 issued and outstanding common shares after completing the Private Placement on May 11, 2011. 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.

Silver Bear Resources Inc.        
Condensed Consolidated Interim Statement of Comprehensive Loss    
For the three months ended March 31, 2011 and 2010        
(Canadian dollars)        
(Unaudited)        
     
    March 31, 2011   March 31, 2010
         
Income        
  Interest income   25,363   10,352
    25,363   10,352
         
Expenses        
  Exploration costs   305,819   554,747
  General and administrative    305,777   378,690
  Amortization    161,560   164,813
  Share-based payment    96,904   21,987
  Gain on disposal of property, plant and equipment   -   (1,922)
  Interest expense   2,239   2,280
  Foreign exchange loss    2,271   3,537
Expenses from operations   874,570   1,124,132
         
Total Loss for the period   (849,207)   (1,113,780)
         
Other comprehensive income (loss)        
  Exchange differences on translating foreign operations   172,360   973
         
Total Comprehensive Loss for the period   (676,847)   (1,112,807)
         
Deficit - Beginning of the year   (69,356,972)   (67,064,433)
         
    (70,206,179)   (68,178,213)
         
Weighted average number of common shares outstanding   37,935,569   37,935,569
         
Basic and diluted loss per share   (0.02)   (0.03)
       

Silver Bear Resources Inc.          
Condensed Consolidated Interim Statement of Financial Position    
(Canadian dollars)          
(Unaudited)          
           
  March 31, 2011   December 31, 2010   January 1, 2010
           
ASSETS          
           
Current assets          
Cash and cash equivalents 10,726,546   11,114,277   12,320,095
Receivable 24,608   24,117   355,438
Inventories 1,143,203   1,097,946   1,226,195
Prepaid expenses 22,106   37,697   90,677
Total current assets 11,916,463   12,274,037   13,992,405
           
Non-current assets          
Mineral property 1,139,241   1,085,277   1,150,234
Property, plant and equipment 786,735   900,072   1,621,159
Total assets 13,842,439   14,259,386   16,763,798
           
LIABILITIES          
           
Current liabilities          
Accounts payable and accrued liabilities 432,993   301,535   352,298
           
Non-current liabilities          
Asset retirement obligation 620,147   588,609   614,801
Total liabilities 1,053,140   890,144   967,099
           
SHAREHOLDERS' EQUITY          
           
Capital Stock 73,771,289   73,771,289   73,771,289
Contributed surplus 9,263,337   9,166,433   9,089,843
Accumulated other comprehensive loss (39,148)   (211,508)   -
Deficit (70,206,179)   (69,356,972)     (67,064,433)
Total shareholders' equity 12,789,299   13,369,242   15,796,699
Total liabilities and shareholders' equity 13,842,439   14,259,386   16,763,798
         
 

Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Cash Flows
For the three months ended March 31, 2011 and 2010
(Canadian dollars)
(Unaudited)
 
 
 
 

 
 
 
 
 
 
 
 
 
         
     
    March 31,
2011
  March 31,
2010
         
Cash provided by (used in)        
         
Operating activities        
Net Loss for the period   (849,207)   (1,113,780)
Adjustments for items not affecting cash:        
  Amortization   161,560   164,813
  Share-based payment   96,904   21,987
  Gain on disposal of property, plant and equipment   -   (1,922)
  Interest expense   2,239   2,280
Net change in non-cash working capital (note 14)   150,133   297,626
Net cash used in operations   (438,371)   (628,996)
         
Investing activities        
  Acquisition of property, plant and equipment   (6,912)   -
  Proceeds from sale of property, plant and equipment   -   1,922
Net cash (used in) provided from investing activities   (6,912)   1,922
Effect of exchange rate changes on cash and cash equivalents   57,552   (1,868)
Decrease in cash and cash equivalents during the period   (387,731)   (628,942)
Cash and cash equivalents - beginning of the period   11,114,277   12,320,095
Cash and cash equivalents - end of the period   10,726,546   11,691,153

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. 

 

 

SOURCE Silver Bear Resources Inc.

For further information:

For further details, please visit www.silverbearresources.com, or contact:

Mark Trevisiol
President and Chief Executive Officer
416-309-2131
mtrevisiol@silverbearresources.com

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Silver Bear Resources Inc.

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