TSX: GPR
NYSE American: GPL
VANCOUVER, Jan. 14, 2019 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther"; the
"Company") announces that further to its agreement to acquire
Beadell Resources Limited ("Beadell") (the "Acquisition") and its
press release dated December 6, 2018
announcing the Loan Agreement (the "Loan") between Great Panther
and Beadell for a non-revolving term loan in the principal amount
of US$5,000,000, Beadell has received
PIS (Programas de Integração Social e de Formação do Patrimônio
do Servidor Público) and COFINS (Contribuição para o
Financiamento da Seguridade Social) tax refunds totaling
approximately US$10,300,000. The
terms of the Loan provide for prepayment of the Loan from any PIS
or COFINS tax refunds.
The Company has agreed to accept partial repayment of
US$3,000,000 of the principal amount
advanced, plus interest and fees accrued to date, and to extend the
maturity date of the remaining US$2,000,000 advanced to March 18,
2019 in order to provide Beadell with additional funds for
general working capital and operating requirements.
"The receipt of the PIS and COFINS tax refunds is good news and
provides welcome cash for Beadell in the short term. In addition,
the extension of part of our loan will provide Beadell with
additional working capital to help manage their operations to the
closing of our Acquisition", stated James
Bannantine, President and CEO. "The shareholder
meetings to approve the Acquisition will take place on February 11th in Vancouver for Great Panther, and on
February 12th in
Perth for Beadell, and, if
approved, the transaction is expected to close within the following
two to three weeks. We are very excited about this transaction,
which combines Great Panther's strong balance sheet and assets in
Mexico and Peru with Beadell's Tucano Mine and
significant exploration potential in Brazil."
The Acquisition will create a new growth-oriented intermediate
precious metals producer focused on the Americas with strong
geographic diversity across three leading mining jurisdictions, and
a diverse asset portfolio including three producing mines, an
advanced stage project, and significant exploration potential.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver mining and
exploration company listed on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE American under the symbol
GPL. Great Panther's current activities are focused on the mining
of precious metals from its two wholly-owned operating mines in
Mexico: the Guanajuato Mine
Complex and the Topia Mine. The Company is also advancing towards a
decision to restart the Coricancha Mine in Peru with the initiation of a Bulk Sample
Program following the completion of a positive Preliminary Economic
Assessment in May 2018. In addition,
the Company has signed an agreement to acquire all of the issued
ordinary shares of gold producer Beadell Resources
Limited.
James Bannantine
President & CEO
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not limited
to, statements regarding the timing and completion of the
Acquisition, the expected use of proceeds of the Loan, and the
timing and repayment of the Loan.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Assumptions
upon which forward looking statements relating to the Acquisition
have been made include that Beadell and Great Panther will be able
to satisfy the conditions in the Scheme Implementation Deed, that
due diligence investigations of each party will not identify any
materially adverse facts or circumstances, that the required
approvals will be obtained from the shareholders of Beadell and
Great Panther, and that all required third party, regulatory and
government approvals will be obtained. Such factors include, among
others, risks and uncertainties relating to potential political and
social risks involving Beadell and Great Panther's operations in a
foreign jurisdiction, the potential for unexpected costs and
expenses, fluctuations in metal prices, fluctuations in currency
exchange rates, physical risks inherent in mining operations,
operating or technical difficulties in mineral exploration, changes
in project parameters as plans continue to be refined, and other
risks and uncertainties, including those described in respect of
Great Panther, in its annual information form for the year ended
December 31, 2017 and material change
reports filed with the Canadian Securities Administrators available
at www.sedar.com and reports on Form 40-F and Form 6-K filed
with the Securities and Exchange Commission and available at
www.sec.gov.
There is no assurance that such forward looking statements will
prove accurate; results may vary materially from such
forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed. Readers
are cautioned not to place undue reliance on forward looking
statements. The Company has no intention to update forward looking
statements except as required by law.
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SOURCE Great Panther Silver Limited