Close of Sale of Snowfield and Brucejack Projects to Pretium
and 2011 Production Guidance
VANCOUVER, BRITISH COLUMBIA --
(MARKET WIRE) -- 12/21/10 -- Silver
Standard Resources Inc. ("Silver
Standard" or the "Company") (TSX: SSO)(NASDAQ: SSRI) is
pleased to report the completion of its sale of the Snowfield and Brucejack Projects and provide silver production guidance
for the Pirquitas Mine in
Snowfield and Brucejack Projects
sale of the Snowfield and Brucejack Projects in
northern British Columbia
to Pretium Resources Inc. ("Pretium") closed on December 21, 2010.
Pursuant to the terms of the transaction, Silver Standard received cash
proceeds of C$215.02 million (before deductions of C$12.645
million payable by Silver Standard), a convertible promissory note in
the principal amount of C$39.753 million and 32,537,833 common
shares of Pretium for total
consideration of C$450 million. The outstanding amount of the
convertible promissory note will be automatically converted into common
shares of Pretium at $6
per share 40 days after the closing to the extent not previously repaid by Pretium. If the promissory note is repaid in
full, Silver Standard will hold a 38.1% equity interest in Pretium. If the promissory note is fully
converted, Silver Standard will hold a 45.8% equity interest in Pretium.
on fourth quarter results to date from the Pirquitas
Mine, Silver Standard maintains full-year 2010 silver production
guidance of 6.3 to 6.5 million ounces. The Company will produce approximately
8.5 million ounces of silver in 2011. The Company plans to provide an exploration
and production update in January 2011.
the proceeds from the sale of Snowfield and Brucejack
and the solid results from the Pirquitas
Mine, Silver Standard is well-positioned to achieve growth through
our project portfolio in 2011 and beyond," said Silver Standard's
President and CEO John Smith.
Standard is a silver mining company that seeks growth through discovery, the
development of its project pipeline, and accretive acquisition opportunities.
receive Silver Standard's news releases by e-mail, contact Michelle
Romero, Communications Director at firstname.lastname@example.org or call (888) 338-0046.
Statements on Forward Looking Information: Statements in this news release relating
to the estimated production of silver, all relating to the Pirquitas Mine, and the sale of the
Snowfield and Brucejack Projects and the proceeds
to Silver Standard are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and forward looking
information within 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. Such risks and uncertainties
include, but are not limited to Silver Standard's ability to raise sufficient
capital to fund development; changes in economic conditions or financial
markets; changes in prices for the company's mineral products or increases in
input costs; uncertainty of production and cost estimates for the Pirquitas Mine; risks and
uncertainties associated with new mining operations including start-up delays
and operational issues; risks relating to the interpretation of drill results
and the geology, grade and continuity of our mineral deposits; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments in Argentina,
United States and other jurisdictions in which Silver Standard may
carry on business; technological and operational difficulties or the delay,
non-compliance or inability to obtain permits encountered in connection with
exploration and development activities; labour
relations matters; and changing foreign exchange rates, all of which are
described more fully in the company's most recent Form 20-F, and in the Management
Discussion and Analysis under the heading "Risks and Uncertainties"
and in other filings with the Securities and Exchange Commission
and Canadian regulatory authorities. 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.)
has neither approved nor disapproved of the information contained herein.
Silver Standard Resources Inc.
N.A. toll-free: (888) 338-0046 or Direct: (604) 484-8216
Standard Resources Inc.