Silver Bear Resources Inc. (TSX: SBR) reports that the Company's major shareholders, A.B. Aterra Resources Ltd. and Inflection Management Corporation Ltd., have agreed to extend the maturity date of their existing convertible notes from December 31, 2016 to March 31, 2017 (the "Note Extension").
Aterra currently holds convertible notes with a principal amount of CDN$4.505 million and Inflection currently holds convertible notes with a principal amount of CDN$13.51 million, all of which were initially issued in December 2015 and are convertible into common shares at CDN$0.045 per share.
As previously announced, the Note Extension was undertaken to provide the Company with additional time to finalize a restructuring of Aterra and Inflection's outstanding convertible notes and negotiate the terms of a new financing process for the Company. The Note Extension was approved by the Toronto Stock Exchange on December 23, 2016.
Silver Bear's CEO, Graham Hill commented, "Silver Bear is continuing to work on the optimal balance sheet restructuring process which minimises shareholder dilution whilst further strengthening the balance sheet for the longer term benefit for the Company. Aterra and Inflection's agreement to grant an extension of their convertible notes demonstrates that their interests align with those of all shareholders, including the building of the Mangazeisky silver mine. Looking back over 2016, Management and the team at Prognoz would not have been able to make such significant progress without support from our major shareholders, Aterra and Inflection and we are very grateful for their contributions. At this time, I would like to wish our team and shareholders all the best during this holiday season and a prosperous New Year."
About Silver Bear Resources
Silver Bear Resources is focused on the development of its wholly-owned Mangazeisky Silver Project, covering a licence area of approximately 570 km2 that includes the high-grade Vertikalny deposit (amongst the highest grade silver deposits in the world), located 400 km north of Yakutsk in the Republic of Sakha within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September 2013 and recently updated its Feasibility Study in Q4 2016. Other information relating to Silver Bear is available at www.silverbearresources.com.
Source: Silver Bear Resources
