VANCOUVER, Feb. 13, 2017 /CNW/ - Silver Standard Resources
Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard") announces that
it has entered into a definitive agreement (the "Agreement") with
Valor Resources Limited (ASX: VAL) ("Valor") to sell 100% of its
Berenguela project in the Lampa Province of Puno, Peru ("Berenguela") for aggregate
consideration of $12 million in
deferred cash and a 9.9% equity interest in Valor. Valor is an
Australian-based company, focused on mineral project exploration
and development, listed on the ASX Limited (the "ASX").
Paul Benson, President and CEO of
Silver Standard said, "The sale of the Berenguela project
demonstrates our continued focus on maximizing the value of our
projects and optimizing our portfolio. We retain exposure to the
success of Berenguela, while we further strengthen our balance
sheet for continued generation of shareholder value."
Under the terms of the Agreement, Silver Standard will sell its
interest in Berenguela for aggregate consideration of:
- $50,000 non-refundable deposit
paid on December 2, 2016;
- $100,000 deposit paid at signing
of the Agreement;
- Escalating cash payments totaling $11.85
million to Silver Standard over five years, payable on each
anniversary of the Agreement;
- A 9.9% equity stake, on a fully diluted basis, in Valor at
closing, with a free-carry interest until Valor raises a minimum of
$8.0 million in one or more
financings; and
- 1.0% net smelter returns royalty on all mineral production from
Berenguela.
Silver Standard also has an anti-dilution right in respect of
subsequent financings by Valor, provided it holds at least five
percent ownership, on a non-diluted basis, in Valor. Completion of
the transaction is subject to customary closing conditions,
including approval of Valor's shareholders and waivers from the
ASX. Silver Standard expects the transaction to close at the end of
the first quarter of 2017.
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.
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; and the ability of Valor to accelerate exploration and
development of Berenguela.
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 Valor
shares due to changes in price, liquidity or disposal cost; the
recoverability of the deferred consideration to be received; 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.