Silver Bear Announces 2011 First Quarter Results and Announces Expanded 2011 Exploration Program
TORONTO, June 9, 2011 /CNW/ --
TORONTO, June 9, 2011 /CNW/ - Silver Bear Resources Inc. ('Silver Bear' or the 'Company') (TSX: SBR) today announces financial results for the quarter ended March 31, 2011,
prepared in accordance with International Financial Reporting Standards
('IFRS'). All dollar amounts are stated in Canadian dollars unless
otherwise indicated.
The Company is also pleased to announce that it has expanded its
exploration program at its 100% owned Mangazeisky Project in Russia for
2011 to include a drilling program of 15,000 metres. In addition,
Silver Bear will complete a Preliminary Economic Assessment at the
Mangazeisky Project early in the third quarter of 2011, to assess the
viability of advancing the Project towards production based on its
current scale. Silver Bear has commissioned a Russian Feasibility Study
and Russian reserve estimate, which will be submitted to Russian
authorities in the fourth quarter of 2011 as part of the process of
obtaining a mining license. The Company is in continuing discussions
with the Russian regulators to extend its current exploration license,
which expires December 31, 2011.
'The Mangazeisky Project hosts an attractive silver deposit with
significant exploration potential,' stated Mark Trevisiol, President
and Chief Executive Officer. 'We are eager to get started on the
expanded exploration program and to advance Mangazeisky through
continued exploration towards development.'
'Together with our newest members of the Board of Directors, Messrs.
Stan Bharti and Mark Trevisiol, we are excited to move forward with the
Project,' added Randall Oliphant, Chairman. 'We welcome the new
directors' and management team's involvement, and remain committed to
creating substantial value for Silver Bear shareholders.'
Financial Results
Silver Bear incurred a net loss for the period ended March 31, 2011 of
$0.8 million, or $0.02 per share. This compares to a loss of $1.1
million or $0.03 per share for the period ended March 31, 2010.
Exploration costs were $0.3 million in the period ended March 31, 2011
compared with $0.6 million in the period ended March 31, 2010. General
and administrative expenses for the period ended March 31, 2011 were
$0.3 million compared with $0.4 million in the prior period. Non-cash
items for the period ended March 31, 2011 were $0.3 million compared
with $0.2 million in the period ended March 31, 2010. Interest income
for the period ended March 31, 2011 was $nil compared with $nil in the
prior period.
Liquidity and Capital Resources
At March 31, 2011, Silver Bear had cash and cash equivalents of $10.7
million. The Company has no debt outstanding. Silver Bear has
sufficient cash and cash equivalents to meet its near term objectives.
Silver Bear has budgeted for 5,000 cubic metres of trenching and 15,000
metres of drilling in 2011 at a cost of $10.0 million with an
additional $1.6 million of corporate costs. Including the proceeds from
the May 11, 2011 private placement, cash and cash equivalents as of May
31, 2011 were $15.1 million.
Appointment of New Chief Financial Officer and New Head Office
Effective June 15, 2011, Ms. Deborah Battiston is to be appointed as
Chief Financial Officer of the Company. Mr. Brian Penny, the current
Chief Financial Officer, will resign as such, but will remain as
advisor to the Company during the transition.
Also effective June 15, 2011, the head office of Silver Bear Resources
will be relocated to:
65 Queen Street West
Suite 800, P.O. Box 71
Toronto, ON M5H 2M5
Silver Bear Resources Inc.
The primary business of the Company is the evaluation, acquisition,
exploration and development of silver properties in the Russian
Federation. The Company's principal asset is its 100% owned Mangazeisky
Project, located approximately 400 kilometres north of Yakutsk in the
Republic of Sakha, Yakutia in the Russian Federation.
Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and
its common shares trade under the symbol 'SBR'. Silver Bear has
44,193,902 issued and outstanding common shares after completing the
Private Placement on May 11, 2011. Other information relating to Silver
Bear is available on SEDAR at www.sedar.com as well as on the Company's website at www.silverbearresources.com.
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Comprehensive Loss
For the three months ended March 31, 2011 and 2010
(Canadian dollars)
(Unaudited)
March 31, 2011 March 31, 2010
Income
Interest income 25,363 10,352
25,363 10,352
Expenses
Exploration costs 305,819 554,747
General and administrative 305,777 378,690
Amortization 161,560 164,813
Share-based payment 96,904 21,987
Gain on disposal of property, plant - (1,922)
and equipment
Interest expense 2,239 2,280
Foreign exchange loss 2,271 3,537
Expenses from operations 874,570 1,124,132
Total Loss for the period (849,207) (1,113,780)
Other comprehensive income (loss)
Exchange differences on translating 172,360 973
foreign operations
Total Comprehensive Loss for the (676,847) (1,112,807)
period
Deficit - Beginning of the year (69,356,972) (67,064,433)
(70,206,179) (68,178,213)
Weighted average number of common 37,935,569 37,935,569
shares outstanding
Basic and diluted loss per share (0.02) (0.03)
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Financial Position
(Canadian dollars)
(Unaudited)
March 31, 2011 December 31, 2010 January 1, 2010
ASSETS
Current assets
Cash and cash 10,726,546 11,114,277 12,320,095
equivalents
Receivable 24,608 24,117 355,438
Inventories 1,143,203 1,097,946 1,226,195
Prepaid expenses 22,106 37,697 90,677
Total current 11,916,463 12,274,037 13,992,405
assets
Non-current assets
Mineral property 1,139,241 1,085,277 1,150,234
Property, plant 786,735 900,072 1,621,159
and equipment
Total assets 13,842,439 14,259,386 16,763,798
LIABILITIES
Current
liabilities
Accounts payable
and accrued 432,993 301,535 352,298
liabilities
Non-current
liabilities
Asset retirement 620,147 588,609 614,801
obligation
Total liabilities 1,053,140 890,144 967,099
SHAREHOLDERS'
EQUITY
Capital Stock 73,771,289 73,771,289 73,771,289
Contributed 9,263,337 9,166,433 9,089,843
surplus
Accumulated other (39,148) (211,508) -
comprehensive loss
Deficit (70,206,179) (69,356,972) (67,064,433)
Total
shareholders' 12,789,299 13,369,242 15,796,699
equity
Total liabilities
and shareholders' 13,842,439 14,259,386 16,763,798
equity
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of
Cash Flows
For the three months ended March 31, 2011
and 2010
(Canadian dollars)
(Unaudited)
March 31, March 31,
2011 2010
Cash provided by (used in)
Operating activities
Net Loss for the period (849,207) (1,113,780)
Adjustments for items not affecting cash:
Amortization 161,560 164,813
Share-based payment 96,904 21,987
Gain on disposal of property, plant and
equipment - (1,922)
Interest expense 2,239 2,280
Net change in non-cash working capital (note
14) 150,133 297,626
Net cash used in operations (438,371) (628,996)
Investing activities
Acquisition of property, plant and
equipment (6,912) -
Proceeds from sale of property, plant and
equipment - 1,922
Net cash (used in) provided from investing
activities (6,912) 1,922
Effect of exchange rate changes on cash and
cash equivalents 57,552 (1,868)
Decrease in cash and cash equivalents during
the period (387,731) (628,942)
Cash and cash equivalents - beginning of the
period 11,114,277 12,320,095
Cash and cash equivalents - end of the
period 10,726,546 11,691,153
Forward-Looking Information
This release and subsequent oral statements made by and on behalf of the
Company may contain forward-looking statements, which reflect
management's expectations. Wherever possible, words such as 'intends',
'expects', 'scheduled', 'estimates', 'anticipates', 'believes' and
similar expressions or statements that certain actions, events or
results 'may', 'could', 'would', 'might' or 'will' be taken, occur or
be achieved, have been used to identify these forward-looking
statements. Although the forward-looking statements contained in this
release reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, Silver Bear cannot be certain
that actual results will be consistent with these forward-looking
statements. A number of factors could cause events and achievements to
differ materially from the results expressed or implied in the
forward-looking statements. Such risks factors include but are not
limited to risks factors identified by Silver Bear in its continuous
disclosure filings filed from time to time on SEDAR. These factors
should be considered carefully and prospective investors should not
place undue reliance on the forward-looking statements. Forward-looking
statements necessarily involve significant known and unknown risks,
assumptions and uncertainties that may cause Silver Bear's actual
results, events, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements. Although
Silver Bear has attempted to identify important risks and factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors and risks that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, prospective investors should not place
undue reliance on forward-looking statements. These forward-looking
statements are made as of the date of this release, and Silver Bear
assumes no obligation to update or revise them to reflect new events or
circumstances, unless otherwise required by law.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/09/c4224.html
For further details, please visit www.silverbearresources.com, or contact:
Mark Trevisiol
President and Chief Executive Officer
416-309-2131
mtrevisiol@silverbearresources.com