VANCOUVER, Nov. 14, 2016 /CNW/ - Bear Creek Mining
Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company")
announces it has selected GMI SA Ingenieros Consultores ("GMI"), a
company owned by the prominent Peruvian engineering and
construction firm Graña y Montero Group ("G&M"), to undertake
Phase I Detailed Engineering work at the Corani silver-lead-zinc
project in Peru. GMI will work
with Bear Creek to fine-tune the Corani engineering design, which
will form the basis of the Company's application for a Construction
Permit. The Corani Phase I Detailed Engineering is a key component
of the use of proceeds of the Company's July
2016 Short Form Prospectus financing (see Bear Creek news
release dated July 26, 2016).
Andrew Swarthout, President and
CEO of Bear Creek, states, "We are very pleased to have the
opportunity to partner with G&M, one of the largest and most
respected Peruvian engineering and construction firms. G&M
along with its subsidiaries has both the breadth and depth of
experience to deliver exceptional service in not only engineering
design but also in permitting, construction of mining operations,
bulk earth moving and contract mining, as demonstrated by their
track record of very successful construction and operation outcomes
at the Cerro Verde, Las Bambas, La Arena, Shauhuindo and Constancia
mining projects in Peru. We look
forward to working with G&M's highly qualified team as we
complete this important milestone in the development of the Corani
project; one of the largest undeveloped silver mines in the
world."
The Phase I Detailed Engineering work will commence in
mid-November and is expected to require 6 months to complete at a
cost of approximately US $3.2 million
(including taxes). It will establish final processing flow sheets,
equipment lists, mine sequencing optimization and updated CapEx and
OpEx cost estimates for the Corani project based on a projected
2018 construction start up time frame, and will be used to support
the Company's application for a Construction Permit.
Concurrently, the Company will engage a project finance
consultant with whom it will work to develop a financing structure
for the Corani project. The Company expects the Phase I Detailed
Engineering to be completed by the end of Q2 2017 and the
Construction Permit and project financing to be in place by mid- to
late-2017 such that a construction decision could be made before
the end of 2017 (which decision will be contingent upon successful
project financing, securement of all necessary permits, and market
conditions). Bear Creek and G&M have indicated a mutual
interest in considering various partnership structures for
construction and operation of the Corani mine, which will be
further contemplated upon completion of the Phase I Detailed
Engineering.
Bear Creek also reports that the Company has submitted an
application to the Peruvian Ministry of Energy and Mines ("MEM")
for accelerated recovery of the 18% value added tax (IGV) that
applies to the Company's planned future investments in the Corani
project. Pending approval of the application, a contract with the
MEM will be executed after which the Company will be able to
recover, on an expedited basis, the IGV taxes associated with its
Corani capital investments as described in the approved ESIA and
the 2015 Corani Feasibility Study (available at
www.sedar.com). Accelerated recovery of IGV taxes is expected
to reduce the Initial CapEx requirements for the Corani project,
including those costs associated with the Phase I Detailed
Engineering.
On behalf of the Board of Directors,
Andrew Swarthout
President and CEO
Regulatory Footnotes
Bear Creek's exploration programs
are overseen by, and disclosure of a technical or scientific nature
has been reviewed and approved by, Andrew
Swarthout, AIPG Certified Professional Geologist, President
and CEO of the Company and a Qualified Person as defined in NI
43-101. Mr. Swarthout has read, verified and approves such
information disclosed in this release.
This news release contains forward-looking information and
forward-looking statements related to the timing of commencement
and completion of the Phase I Detailed Engineering, timing of a
possible Corani Project construction decision and commencement of
construction, the engagement of a project finance consultant, the
potential for future contractual arrangements with G&M, the
possibility for successfully negotiating a contract for accelerated
recovery of Peruvian IGV taxes, and the anticipated effect of an
IGV contract on Initial CapEx requirements for Corani. Certain of
these forward-looking statements are contingent upon various
assumptions, including that the Phase 1 Detailed Engineering
results will provide sufficient information for the Construction
Permit application, and that the Company is eligible for
accelerated IGV tax recovery, and upon future events transpiring,
including that the Company is able to obtain all necessary permits
and secure project financing for the Corani project. This
forward-looking information is provided as of the date of this news
release and reflects current estimates, predictions, expectations
or beliefs regarding future events and is based on the Company's or
its consultants' beliefs at the time the statements were made, as
well as various assumptions made by and information currently
available to them. Although management considers these assumptions
to be reasonable based on information available to it, they may
prove to be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and risks exist that estimates, forecasts,
projections and other forward-looking statements will not be
achieved or that assumptions on which they are based do not reflect
future experience. We caution readers not to place undue reliance
on these forward-looking statements as a number of important
factors could cause the actual outcomes to differ materially from
the expectations expressed in them. These risk factors may be
generally stated as the risk that the assumptions and estimates
used to make such forward-looking statements do not occur and the
additional risks described in the Company's most recent Annual
Information Form. When relying on our forward-looking statements,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. The Company
does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by the Company
or on behalf of the Company, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Bear Creek Mining Corporation