Bear Creek Mining announce that in connection with its previously announced overnight marketed public offering on October 20, 2009, it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Capital Corp. to sell 10,960,000 common shares in Bear Creek at a price of Can$3.65 per share to raise gross proceeds of Can$40,004,000 pursuant to a short form prospectus. In addition, the company has granted the underwriters an over-allotment option to purchase up to that number of additional common shares equal to 15% of the common shares sold pursuant to the offering, exercisable at any time up to 30 days from the closing of the offering. Bear Creek intends to use the net proceeds from the offering to fund the exploration and development of the company's Corani and Santa Ana silver projects in Peru and for general working capital purposes.
Bear Creek Mining received positive Scoping Study results and Preliminary Economic Assesment as defined by NI-43-101 based on the latest resource estimate update for the company’s 100% owned Santa Ana silver deposit located in southern Peru. Highlights include: 4.6 million ounces per year produced over 11.8 years in a heap leach operation and 5 million ounces per year for the first 6 years of operation; Cash cost of $7.47 per ounce silver; capital cost of $51 million with a two and a half year payback; net present value is $55 million at a 7% discount rate for Bear Creek’s 100% interest and the internal rate of return for the project is 29%; the undiscounted after tax NPV is $115 million and Measured and Indicated resources have increased 19% to 66.8 million tonnes at 45.5 g/t silver containing 97.7 million ounces of silver.
Bear Creek Mining announced results for 27 additional diamond drill holes (4,962.1 meters) at Santa Ana project located in Peru. To date, 306 holes were drilled (55,574.1 meters). Best results came from hole SA-177 intersecting 46.0 meters averaging 273.7 g/t silver, 1.0% zinc from 98.0 meters, including 10.0 meters of 1,147.6 g/t silver, 2.9% zinc.
Advanced or Above
