SilverCrest
to Acquire 100% of the Santa Elena Project
|
TSX-V: SVL
|
For
Immediate Release
|
VANCOUVER,
B.C. August 14, 2009 -
SilverCrest Mines Inc. (the "Company") advises that it has
elected to exercise its option and complete the acquisition of the Santa
Elena gold and silver project in Mexico (the "Santa Elena
Project") by making a final payment of US$2.1 million to the vendors
of the project, in the following manner:
(a)
US$1,575,000 shall be paid in
cash; and
(b)
US$525,000 shall be paid by
issuing a total of 1,216,968 common shares (the "Shares") of the
Company at an issue price of $0.50 per share.
Pursuant to the Santa Elena option, the Company has the right to
acquire a 100 percent interest in the Santa Elena Project by making staged
option payments totalling US$3.0 million over a period of five years and
making a final US$1.0 million payment conditional upon receipt of a
feasibility study and all operating and environmental permits relating to
the Project. The final payments were payable, at the Company's option,
either wholly in cash or up to 50 percent in common shares of the Company. Payments
to date totalling US$1.9 million have been made in cash. All required
operating and environmental permits have been received and the requisite
feasibility study has been completed.
The acquisition of 100 percent of the Santa Elena Project will be
completed upon the registry of the executed title documents which is
anticipated to occur by the end of August 2009. Completion of the
acquisition of the Santa Elena Project is a required condition that needs
to be satisfied in order for the Company to commence drawdowns under the
US$12.5 million Project Loan Facility with Macquarie Bank Limited and
under the Sandstorm Gold Purchase Agreement with Sandstorm Resources Ltd.
for the advance of US$12.0 million. These funds will be used to
construct and develop a mine on the gold and silver, open pit, heap leach
Santa Elena Project.
J. Scott Drever, President stated: "The final acquisition of
our interest in the Santa Elena project is obviously an important step in
the process of bringing the Santa Elena mine into production. Completing
this transaction will facilitate finalization of other conditions required
to access the funds from Macquarie Bank and Sandstorm Resources and enable
us to maintain our construction and development schedules to have the mine
up and running into 2010. "
The Shares to be issued pursuant to the acquisition of the Santa
Elena Project will be subject to a hold period of four months and one day.
The issuance of the Shares is subject to the approval of the TSX Venture
Exchange.
SilverCrest Mines Inc. is a "Silver
Focused" exploration and development company with a portfolio of high
grade silver and gold deposits and exploration properties located in Mexico
and El Salvador. This property portfolio, which includes reported indicated
and inferred silver resources and substantial exploration potential,
provides an important base from which SilverCrest can develop its corporate
objective of becoming a significant silver asset based company. The
Company's immediate initiative is to acquire and develop substantial silver
resources and ultimately to operate high grade silver mines throughout
North, Central and South America.
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.
|