VANCOUVER, Sept. 19, 2016 /PRNewswire/ - Silver Standard
Resources Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard")
announces that it has entered into a definitive agreement (the
"Agreement") with Huayra Minerals Corporation ("Huayra") to advance
its Diablillos and M-18 projects, located in Argentina (collectively, the "Projects").
Silver Standard will maintain a 19.9% equity interest in
Huayra and nominate one member to the Board of Directors of
Huayra.
Paul Benson, President and CEO of
Silver Standard said, "This transaction demonstrates our continued
focus on maximizing the value of our portfolio of projects by
partnering with an Argentina-focused company who can accelerate
exploration and development at Diablillos and M-18. The
transaction allows Silver Standard to support the success of Huayra
and the advancement of the projects."
Huayra is a company focused on exploration and development in
Argentina. Huayra has entered into
a binding letter of intent with Angel Bioventures Inc. (TSX.V:
DDD.H) to complete a reverse takeover transaction ("RTO"). If
the RTO is completed, the resulting company (the "Resulting
Issuer") is expected to be listed on the TSX Venture
Exchange. Pursuant to the Agreement, if the RTO is completed,
the Resulting Issuer is required to enter into an agreement with
Silver Standard under which it will be bound by the terms of the
Agreement and will assume all of Huayra's obligations under the
Agreement.
Under the terms of the Agreement, Silver Standard will be
eligible to receive:
- A 19.9% equity stake in Huayra, with free carried interest
until the completion of a public offering of $5.0 million or more (the "Public
Offering");
- The right to nominate one member to the Board of Directors of
Huayra for up to three years after the closing date, provided that
Silver Standard continues to hold more than ten percent of the then
issued and outstanding shares of Huayra on a non-diluted
basis;
- The right to participate in future equity financings after the
Public Offering to maintain its ownership level in Huayra for as
long as Silver Standard continues to hold more than ten percent of
the then issued and outstanding shares of Huayra on a non-diluted
basis;
- Cash payments to Silver Standard of approximately $1.5 million over the first two years and
$12.5 million over the following
three to five years; and
- 1.0% net smelter returns royalty on production from each of the
Projects.
Completion of the transaction is subject to customary closing
conditions. Silver Standard expects the transaction to close in
November 2016.
About Silver Standard
Silver Standard is a Canadian-based precious metals producer
with three wholly-owned and operated mines, including the Marigold
gold mine in Nevada, U.S., the
Seabee Gold Operation in Saskatchewan,
Canada and the Pirquitas silver mine in Jujuy Province,
Argentina. We also have two
feasibility stage projects and an extensive portfolio of
exploration properties throughout North and South America. We are committed to delivering
safe production through relentless emphasis on Operational
Excellence. We are also focused on growing production and Mineral
Reserves through the exploration and acquisition of assets for
accretive growth, while maintaining financial strength.
About Huayra Minerals Corporation
Huayra is a mineral exploration and development company engaged
in the acquisition, exploration and development of mineral resource
properties in Argentina. Huayra
has rights in the Cerro Amarillo property in the Province of
Mendoza, Argentina and the Samenta
property in the Province of Salta, Argentina.
For further information contact:
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
Vancouver, BC
N.A. toll-free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: invest@silverstandard.com
To receive Silver Standard's news releases by e-mail, please
register using the Silver Standard website at
www.silverstandard.com.
Cautionary Note Regarding Forward-Looking
Statements:
This news release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (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. The forward-looking statements
in this news release relate to, among other things: the anticipated
closing date of the transaction; the value of the deferred
consideration under the transaction; the benefits of the
transaction; the ability of Huayra to accelerate exploration and
development of the Projects; and the closing of the RTO and the
listing of the Resulting Issuer's shares on the TSX Venture
Exchange.
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, without limitation, the following: the closing
of the proposed transaction; fully realizing the value of the
Huayra shares and the Resulting Issuer's shares, as applicable, due
to changes in price, liquidity or disposal cost; the recoverability
of the deferred consideration to be received; the closing of the
proposed RTO; and those various risks and uncertainties identified
under the heading "Risk Factors" in our most recent Annual
Information Form filed with the Canadian securities regulatory
authorities and included in our most recent Annual Report on Form
40-F filed with the U.S. Securities and Exchange Commission. 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.