SilverCrest Mines Inc. (the �Company� or
�SilverCrest�) is pleased to announce that it has retired the Project Loan Facility with Macquarie Bank Limited related
to the construction of the Santa Elena Mine located
in Sonora, Mexico. The original amount of the loan was $12.5 million USD
and the principal balance outstanding at September 30, 2011 was $7.1 million USD. The loan
retirement was funded entirely with cash flow from operations and was repaid 21 months ahead of schedule.
In addition to retiring the Project Loan Facility the Company also entered into the following transactions with Macquarie Bank Limited:
�
Effective December, 2011, settled the
5,000 ounce European
gold call option expiring June
13, 2012 for $3,010,609 USD which will reduce the Company�s derivative
instrument liability by the carrying
value of $3,143,959 USD and result in a small derivative instrument
gain on the transaction.
�
Effective December, 2011 the Company delivered 1,141 ounces of
gold in excess of the required
hedge delivery schedule which reduced the required 2012 hedge delivery to 8,509 ounces of gold. As at December 31, 2011 there are
35,485 ounces of gold remaining
to be delivered into the Hedging Facility during the period from 2012 to 2014.
Barney Magnusson, Chief
Financial Officer stated;
�Repaying the Project Loan
Facility within 6 months of declaring
commercial production at the Santa Elena Mine is a major milestone in the Company�s development. Coupled with the early settlement of the European call option and accelerated
gold ounce deliveries into the Hedging Facility we are well positioned to take advantage of anticipated robust precious metal prices in 2012.�
The Company anticipates
production of approximately 33,000 ounces of gold and 435,000 ounces
of silver for 2012. After
making the gold stream payment to Sandstorm Gold
Ltd. and deliveries to the Hedging
Facility the Company expects to have approximately
18,000 ounces of gold and all 435,000 ounces of silver available for delivery at spot metal prices during the year.
The above transactions strengthen
the Company�s free cash flow
in 2012 and re-enforces
the ability to carry out the Expansion Plan at the Santa Elena Mine and continue to aggressively explore the La Joya
Project located in Durango, Mexico.
For further information, please
refer to News Releases on the Company�s
website at www.silvercrestmines.com,
and on SEDAR at www.sedar.com.
SilverCrest Mines Inc. (TSX-V:
SVL OTCQX:STVZF) 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, M�xico. 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 recover approximately 4,805,000 ounces of silver and 179,000 ounces of gold over the 6.5 year
life of the open pit phase of the Santa Elena
Mine. A three year
expansion plan is underway
to double metals production at
the Santa Elena Mine and exploration programs are rapidly
advancing the definition
of a large polymetallic deposit
at the La Joya property in Durango State.
FORWARD-LOOKING
STATEMENTS
This presentation
contains �forward-looking
statements� within the meaning of Canadian securities
legislation and the United States Securities Litigation Reform Act of 1995. Such forward-looking statements concern the Company�s anticipated results and developments in the Company�s
operations in future periods,
planned exploration and development
of its properties,
plans related to its
business and other matters
that may occur in the future. These
statements relate to analyses and other information that are based on expectations of future performance, including silver and gold
production and planned work
programs. Statements concerning
reserves and mineral resource estimates may also constitute
forward-looking statements
to the extent that they involve estimates of the mineralization
that will be encountered if the property is developed and, in the case of mineral
reserves, such statements reflect the
conclusion based on certain assumptions
that the mineral deposit can be economically exploited.
Forward-looking statements
are subject to a variety
of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without
limitation: risks related
to precious and base metal
price fluctuations; risks
related to fluctuations in the currency markets (particularly the Mexican
peso, Canadian dollar and United States dollar); risks
related to the inherently
dangerous activity of mining, including conditions
or events beyond our control, and operating or technical
difficulties in mineral
exploration, development and mining
activities; uncertainty
in the Company�s ability
to raise financing and fund the exploration and development
of its mineral properties; uncertainty as to
actual capital costs,
operating costs, production and economic returns, and uncertainty that development activities will result in profitable mining operations; risks related to reserves and mineral resource figures being estimates based on interpretations and assumptions
which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral
reserves as properties
are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being
subject to environmental
laws and regulations which may increase
costs of doing business
and restrict our operations; risks related to mineral properties being subject to prior unregistered agreements, transfers, or claims and other
defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy;
risks related to the Company�s status as a foreign private issuer in the United States; risks
related to all of the Company�s
properties being located in Mexico and El Salvador, including
political, economic, social
and regulatory instability;
and risks related to officers and directors becoming associated with other natural resource companies which may give rise
to conflicts of interests.Should
one or more of these risks
and uncertainties materialize,
or should underlying assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking
statements. The Company�s
forward-looking statements
are based on beliefs,
expectations and opinions of management on the date the statements
are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
The information provided in this news release
is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of
the Company. The information contained
herein is not a
substitute for detailed investigation or analysis. No securities
commission or regulatory authority
has reviewed the accuracy
or adequacy of the information presented.