VANCOUVER, Jan. 27,
2015 /CNW/ - Silver Standard Resources Inc. (NASDAQ:
SSRI) (TSX: SSO) ("Silver Standard" or the "Company") advises that
it received today a Notice of Reassessment in the aggregate amount
of approximately $41.4 million from
the Canada Revenue Agency ("CRA") related to the tax treatment of
the 2010 sale of shares of its subsidiary that owned and operated
the Snowfield and Brucejack projects. The CRA has asserted the
transaction was of an income nature and not of a capital nature as
recorded by the Company.
Silver Standard strongly disagrees with the CRA's
reassessment and will vigorously defend its position including
filing a Notice of Objection and, if necessary, a Notice of Appeal
to the Tax Court of Canada. In
order to object to the reassessment, the Company is required to
make a deposit of 50% of the reassessed amount plus interest
accrued to the date of the Notice of Reassessment. As of
December 31, 2014, the Company had an
unaudited cash and cash equivalents balance of approximately
$185 million.
The Company cannot determine how long the appeal
and court processes will take at this time. If Silver Standard is
successful in defending its position, deposits made plus applicable
interest will be refunded.
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Cautionary Note Regarding Forward-Looking
Statements
Statements in this news release are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and forward-looking
information within the meaning of Canadian securities laws
(collectively, "forward-looking statements"). All statements, other
than statements of historical fact, are forward-looking statements.
Generally, forward-looking statements can be identified by the use
of words or phrases such as "expects," "anticipates," "plans,"
"projects," "estimates," "assumes," "intends," "strategy," "goals,"
"objectives," "potential" or variations thereof, or stating that
certain actions, events or results "may," "could," "would," "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms or similar expressions. These forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties and other factors that could cause actual events or
results to differ from those expressed or implied, including the
closing of the proposed transaction and those various risks and
uncertainties identified under the heading "Risk Factors" in our
most recent Form 40-F and Annual Information Form filed with the
U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Our forward-looking statements reflect
current expectations regarding future events and operating
performance and speak only as of the date hereof and we do not
assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change other than as required by applicable law. For the
reasons set forth above, you should not place undue reliance on
forward-looking statements.
SOURCE Silver Standard Resources Inc.