Silver
Standard Announces Sale of Snowfield and Brucejack Projects
VANCOUVER, BRITISH
COLUMBIA, Oct 29, 2010 (MARKETWIRE via COMTEX News Network) -- Silver
Standard Resources Inc. (NASDAQ: SSRI)(TSX: SSO) ("Silver Standard or the
"Company") today announced that it has entered into an agreement
(the "Sale Agreement") to sell its Snowfield and Brucejack Projects
in northern British Columbia to Pretium Resources Inc. ("Pretium"),
a company formed to acquire and explore precious metals projects, led by
Robert A. Quartermain. Under the terms of the Sale Agreement, Silver Standard
will receive total consideration of $450 million, consisting of a minimum of
$215 million in cash and the balance in common shares of Pretium valued at
the offering price of such shares under an initial public offering being
undertaken by Pretium (the "IPO"). The amount of the purchase price
payable in cash will increase by the amount of the proceeds realized by
Pretium under the IPO in excess of $265 million. On completion of the
transaction, Silver Standard's ownership interest in Pretium is expected to
be less than 50%.
"The sale of Snowfield and Brucejack is the culmination of
an extensive review of strategic alternatives focused on developing projects
that are core to capability and strategy whilst monetizing project options
that are best developed by others," said John Smith, Silver Standard's
Chief Executive Officer. "Bob Quartermain has a proven track record in
capturing value from exploration and we look forward to Snowfield and
Brucejack being given the absolute focus by Pretium to build value from
continued exploration and project definition."
As contemplated by the Sale Agreement, Silver Standard will
appoint two nominees to the five-member board of directors of Pretium at
closing. The Company will also have the right to purchase or sell securities
under subsequent equity offerings, as long as it holds at least 10% of the
outstanding equity securities of Pretium.
The transaction has been approved by Silver Standard's board of
directors and is subject to a number of conditions, including the raising by
Pretium of a minimum of $265 million in proceeds under the IPO. The closing
of the transaction is expected to occur before the end of the year. In this
news release, all references to $ refer to Canadian dollars.
Silver Standard is a silver mining company that seeks growth
through discovery, the development of its project pipeline, and accretive
acquisition opportunities.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state.
Forward Looking Statements: Certain statements in this news
release are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and forward-looking information
within the meaning of Canadian securities laws (collectively,
"forward-looking statements"). Forward-looking statements are
statements that are not historical facts and that are subject to a variety of
risks and uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements.
Forward-looking statements include, without limitation, those relating to the
sale of the Snowfield and Brucejack Projects, the closing of the transaction
and the anticipated proceeds to Pretium and Silver Standard. Such risks and
uncertainties include, but are not limited to, the need to satisfy the
conditions set forth in the Sale Agreement relating to the sale of the
Snowfield and Brucejack Projects; the need to satisfy regulatory and legal
requirements with respect to the transaction, and the ability of Pretium to
complete the IPO in satisfaction of the conditions of the Sale Agreement. The
Company does not intend, and does not assume any obligation, to update any
forward-looking statements, other than as required by applicable law.
(SOURCE: Silver Standard Resources Inc.)
Contacts:
Silver Standard Resources Inc.
Paul LaFontaine
Director, Investor Relations
N.A. Toll Free: 1-888-338-0046 or Direct: (604) 484-8212
invest@silverstandard.com
www.silverstandard.com
SOURCE: Silver Standard Resources Inc.
mailto:invest@silverstandard.com
http://www.silverstandard.com