Silver
Standard Announces Automatic Conversion of Convertible Promissory Note Issued
by Pretium Resources Inc.
VANCOUVER,
BRITISH COLUMBIA -- (MARKET WIRE) -- 02/01/11 -- Silver
Standard Resources Inc. (TSX: SSO)(NASDAQ: SSRI) ("Silver
Standard" or the "Company") announces that the balance of a
convertible promissory note (the "Convertible Note") issued by Pretium
Resources Inc. ("Pretium") to the Company was automatically
converted in accordance with its terms on January 31, 2011.
The conversion resulted in the issuance to Silver Standard of 3,625,500
common shares of Pretium (the "Pretium Shares") at a
deemed price of $6.00 per Pretium Share. Following this issuance,
Silver Standard owns 36,163,333 Pretium Shares, representing 42.3% of the
issued and outstanding Pretium Shares.
The Convertible Note was issued to the Company in connection
with the acquisition by Pretium of the Snowfield and Brucejack
projects and related assets. Of the original principal amount of the
Convertible Note, $18 million was previously repaid by Pretium
from the aggregate gross proceeds of the exercise of an over-allotment option
granted to the underwriters in connection with Pretium's initial
public offering.
Silver Standard does not have any present intention to acquire
ownership of, or control over, additional securities of Pretium.
It is the intention of Silver Standard to evaluate its investment in Pretium
on a continuing basis and such holdings may be increased or decreased in the
future.
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.
Certain information otherwise required to be included in this
news release has been omitted on the basis that it is included in the report
filed by the Company pursuant to National Instrument 62-104. A copy of that
report may be obtained from Michelle Romero at
1-888-338-0046.
Silver Standard's address for the purposes of NI 62-103 is 1400
- 999 West Hastings Street, Vancouver,
BC, V6C 2W2.
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
Company's intentions regarding its interest in Pretium. Such risks
and uncertainties include, but are not limited to, the future performance of
the Company and of Pretium. 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.
Michelle Romero
Communications Director
N.A. Toll Free: 1-888-338-0046 or Direct: (604) 484-8216
invest@silverstandard.com
www.silverstandard.com
Source: Silver
Standard Resources Inc.