Press release from Newsfile Corp
SilverCrest Mines Enters into 3-Year US$40 Million Secured Facility with the Bank of Nova Scotia - Video News Alert Posted on InvestmentPitch.com
Monday, July 15, 2013
SilverCrest Mines Enters into 3-Year US$40 Million Secured Facility with the Bank of Nova Scotia - Video News Alert Posted on InvestmentPitch.com10:20 EDT Monday, July 15, 2013
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2013) - SilverCrest Mines (TSXV: SVL) (NYSE MKT: SVLC) announced that it has entered into a 3 year US $40 million secured corporate facility with the Bank of Nova Scotia.
SilverCrest's flagship property is the 100%-owned Santa Elena Mine, located 150 kilometres northeast of Hermosillo, in the State of Sonora, Mexico.
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The Santa Elena Mine is a high-grade, epithermal silver and gold producer, with an estimated life of mine cash cost of US$8.00 per ounce of silver equivalent, using a 55 to 1, silver to gold ratio.
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 3,000 tonnes per day conventional mill facility is underway to significantly increase metals production, both open pit and underground, by 2014.
Exploration programs continue to make new discoveries at Santa Elena and 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 silver equivalent.
The credit limit under the Facility will reduce by US $10 million on each of July 11, 2014 and 2015, and will mature on July 11, 2016, subject to a 1 year extension of these dates, by mutual agreement. The rate is set at LIBOR plus 3.00% to 4.25% or the Scotiabank Base Rate plus 2.00% to 3.25% at the company's election.
J. Scott Drever, President 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."
Canaccord Genuity Analyst Nicholas Campbell maintained his speculative buy recommendation, with a target of $4.00 and has stated, "We continue to view SilverCrest as a likely consolidation target for a larger cap silver producer."
SilverCrest currently trades at $1.75, and with 108.6 million shares outstanding, the company is capitalized at $190 million.
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Barry Morgan, CFO