SilverCrest Mines Announces CAD$30.0
Million Bought Deal Common Share Financing
SilverCrest Mines Inc. (TSXV:SVL) (�SilverCrest�
or the �Company�)is pleased to announce that it has entered into an agreement
with a syndicate of underwriters co-led by Canaccord
Genuity Corp. and Jennings Capital Inc. (the
�Underwriters�), pursuant to which the Underwriters have agreed to
purchase, on a bought deal basis pursuant to a short form prospectus,
18,750,000 common shares (the �Common Shares�) of the Company at a price of
CAD$1.60 per Common Share for gross proceeds of CAD$30,000,000 (the
�Underwritten Offering�). In addition, the Company has granted the
Underwriters an option to purchase additional Common Shares at the Offering
price to raise additional gross proceeds of up to 15% of the Offering (the
�Over-Allotment Option�), exercisable for a period of up to 30 days after
the closing date (the �Over-Allotment Option�, and together with the
Underwritten Offering, the �Offering�).
The Underwriters will receive a cash fee on the sale of the Common Shares
equal to 6% of the gross proceeds raised, and broker warrants (�Broker
Warrants�) equal to 6% of the Offering. Each Broker Warrant shall be
exercisable for one common share of the Company at a price of CAD$1.60 at
any time up to 24 months after closing.
The proceeds from the Offering are expected to be used by the Company to
finance commencement of the Santa Elena Expansion Project, exploration and
development of its other properties in Mexico, and for general working
capital and corporate purposes.
Closing of the Offering is anticipated to occur on or before May 17, 2011
and is subject to certain conditions including, but not limited to, the
completion of satisfactory due diligence by the Underwriters and the
receipt of applicable regulatory approvals including approval of the TSX
Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of
an offer to buy nor shall there be any sale of any of the Common Shares in
any jurisdiction in which such offer, solicitation or sale would be
unlawful. The Common Shares have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or the securities laws of any state of the United
States and may not be offered or sold within the United States or to, or
for the account or the benefit of, U.S. persons (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S. Securities
Act and applicable state securities laws or pursuant to an exemption from
such registration requirements.
SilverCrest Mines is a Mexican precious metals
producer with headquarters based in Vancouver, BC. SilverCrest�s
flagship property is the 100%-owned Santa Elena Mine, which is located
150km northeast of Hermosillo, near Banamichi in
the State of Sonora, Mexico. The mine is a high-grade, epithermal gold and
silver producer, with an estimated life of mine cash cost of US$8 per ounce
of silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500 tonnes per day facility should produce an average of
approximately 800,000 ounces of silver and 30,000 ounces of gold per full
production year from the open-pit heap leach operation.
This news release contains forward-looking
statements, which address future events and conditions, which are subject
to various risks and uncertainties. The Company�s actual results,
programs and financial position could differ materially from those
anticipated in such forward-looking statements as a result of numerous
factors, some of which may be beyond the Company�s control. These
factors include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological
data, the uncertainties of resource and reserve estimations, receipt and
security of mineral property titles; project cost overruns or unanticipated
costs and expenses, fluctuations in metal prices; currency fluctuations;
and general market and industry conditions. Forward-looking
statements are based on the expectations and opinions of the Company�s
management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
�J. Scott Drever�
J. Scott Drever, President
For further information, please contact:
Fred Cooper
570 Granville Street, Suite 501
Vancouver, BC V6C 3P1
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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