Silver Bear Announces Third Quarter 2012 Results
TORONTO, ONTARIO, Nov 12, 2012 (Menafn - MARKETWIRE via COMTEX) --Silver Bear Resources Inc. ("Silver Bear" or the "Company") today releases its third quarter results of 2012 for the periodending September 30, 2012. The Company is engaged in the explorationand development of its Mangazeisky Silver property located inYakutia, Russia. As set out in its announcement of September 20,2012, the Company's total NI 43-101 compliant resources on itsMangazeisky property are 1.1 million tonnes containing 17.9 millionounces silver at 518 Ag/t of Indicated mineralization and 4.9 milliontonnes containing 43.9 million ounces silver at 282 g/t Ag ofInferred mineralization (see table 1).
Table 1
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Prospect AreaIndicated ResourceInferred Resource
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TonnesAg (g/t)Oz (M)TonnesAg (g/t)Oz (M)
(M)(M)
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Vertikalny
Central Zone1.1518.217.91.1649.323.8
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Vertikalny
North West ZoneNil0.5379.46.6
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Nizhny EndybalNil3.213313.5
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Total IndicatedTotal Inferred
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TotalTonnes (M)Ag (g/t)Oz (M) Tonnes (M)Ag (g/t)Oz (M)
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1.151817.94.928243.9
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This year the Company completed over 3,000 meters of drilling on itsproperty, and in doing so, expanded its inferred mineral resourceestimate by 13.5 million ounces of Silver through delineating knownmineralization on its Nizhny Endybal prospect area (see above Table 1and announcement September 20, 2012). During drilling this summer onits Vertikalny prospect, the company intersected 29 meters of 1960g/t of Silver (see September 6, 2012 announcement). The orientationof this drill hole was down dip to the ore body in an effort tocapture a metallurgical sample for further metallurgical testing.Additionally, the Company performed over 7,000 cubic meters oftrenching and conducted the first airborne geophysical survey on theMangazeisky property lease.
Further, after receipt of its Certificate of First Discovery (seeannouncement August 14, 2012), the Company has subsequently filed anapplication for its mining license on the property. The Company isalso seeking to extend its exploration license which currentlyexpires December 31, 2012. Discussions are continuing with RussianAuthorities on both the mining and exploration license applications.
Financial Results
Net Loss
Silver Bear incurred a net loss for the nine-month period endedSeptember 30, 2012 of 8.04 million, or 0.16 per share. Thiscompares to a loss of 7.01 million or 0.17 per share for ninemonths ended September 30, 2011.
Exploration costs were 5.26 million in the nine-month period endedSeptember 30, 2012 compared with 4.57 million for the nine-monthperiod ended September 30, 2011, as a result of preparation for thesummer drilling program in the beginning of the year. General andadministrative expenses for the nine-month period ended September 30,2012 were 1.75 million compared with 1.65 million in the prioryear, as the Company expands its management team and investorrelations activities. Non-cash items for the nine-month period endedSeptember 30, 2012 were 1.0 million compared with 0.93 million forthe nine months ended September 30, 2011. Interest income for thenine-month period ended September 30, 2012 was 0.01 million comparedwith 0.10 million in the prior year.
Silver Bear incurred a net loss for the three-month period endedSeptember 30, 2012 of 1.61 million, or 0.03 per share. Thiscompares to a loss of 5.0 million or 0.11 per share for thethree-month period ended September 30, 2011.
Exploration costs were 0.88 million for the three-month period endedSeptember 30, 2012 compared with 3.79 million for three-months endedSeptember 30, 2011, as a result of the relative timing of the drillprograms in 2012 and 2011. General and administrative expenses forthe three-month period ended September 30, 2012 were 0.46 millioncompared with 0.90 million in the prior year, as the Company focusedon evaluating strategic alternatives available and undertook severalcost saving initiatives to reduce travel and investor relationsexpenses. Non-cash items for the three-month period ended September30, 2012 were 0.33 million compared with 0.39 million for the threemonths ended September 30, 2011. Interest income for the three-monthperiod ended September 30, 2012 was insignificant compared with 0.04million in the prior year.
Liquidity and Capital Resources
At September 30, 2012, Silver Bear had cash and cash equivalents of0.73 million. The Company has total obligations of 0.50 millionunder a three year finance lease of exploration equipment. TheCompany has total current assets of 3.2 million and total currentliabilities of 1.2 million. Additional funding is expected to berequired for the 2013 exploration program.
Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Financial Position
(Canadian dollars)
(Unaudited)
September 30,December 31,
20122011
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ASSETS
Current assets
Cash and cash equivalents732,7944,282,883
Receivable469,610714,033
Inventories1,752,368573,727
Prepaid expenses197,581210,433
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Total current assets3,152,3535,781,076
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Non-current assets
Mineral property1,209,1531,212,964
Property, plant and equipment2,068,530636,008
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Total assets6,430,0367,630,048
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities1,023,113617,446
Finance lease218,721-
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Total current liabilities1,241,834617,446
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Non-current liabilities
Asset retirement obligation577,645579,478
Finance lease284,542-
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Total liabilities2,104,0211,196,924
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EQUITY
Equity attributable to owners of Silver Bear
Resources Inc.
Capital Stock83,580,38478,730,574
Contributed surplus11,318,05410,081,156
Accumulated other comprehensive loss(646,753)(497,307)
Deficit(89,925,670)(81,881,299)
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Total equity4,326,0156,433,124
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Total liabilities and shareholders' equity6,430,0367,630,048
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Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Loss and Comprehensive Loss
For the three and nine months ended September 30, 2012 and 2011
(Canadian dollars)
(Unaudited)
For the three monthsFor the nine months
endedended
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SeptemberSeptemberSeptemberSeptember
30,30,30,30,
2012201120122011
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Income
Interest income1,94139,42410,24296,547
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1,94139,42410,24296,547
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Expenses
Exploration costs877,7403,792,5245,256,5704,573,847
General and
administrative458,657897,7261,753,2551,645,227
Depreciation41,17228,959157,982296,974
Share-based payments286,813357,845843,363622,558
Accretion expense-2,230-6,766
Interest expense15,473-37,873-
Foreign exchange (gain)
loss(71,725)(42,201)5,570(37,907)
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Expenses from operations1,608,1305,037,0838,054,6137,107,465
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Net loss for the period(1,606,189) (4,997,659)(8,044,371) (7,010,918)
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Other comprehensive income
Exchange differences on
translating foreign
operations9,951-(149,446)135,370
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Comprehensive loss for the
period(1,596,238) (4,997,659)(8,193,817) (6,875,548)
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Weighted average number of
common shares outstanding 53,576,09044,203,21449,353,67140,552,736
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Basic and diluted loss per
share(0.03)(0.11)(0.16)(0.17)
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Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Changes in Equity
For the three and nine months ended September 30, 2012 and 2011
(Canadian dollars)
(Unaudited)
Attributable to equity owners of Silver
Bear Resources Inc.
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Accumulated
other
Share Contributedcomprehensive
capitalsurplusloss
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Balance - December 31, 201073,771,2899,166,433(211,508)
Net loss for the period---
Other comprehensive income (net of
tax):
Cumulative translation adjustment--(213,142)
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Comprehensive income (loss) for
the period--(213,142)
Share based payments-622,558-
Options exercised10,060(4,926)-
Net proceeds from issuance shares
in private placement4,949,225--
Balance - September 30, 201178,730,5749,784,065(424,650)
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Balance - December 31, 201178,730,57410,081,156(497,307)
Net loss for the period---
Other comprehensive income (net of
tax):
Cumulative translation
adjustment--(149,446)
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Comprehensive income (loss) for
the period--(149,446)
Share based payments-843,363-
Options exercised
Net proceeds from issuance shares
in private placement4,849,810--
Warrants-393,535-
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Balance - September 30, 201283,580,38411,318,054(646,753)
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Silver Bear Resources Inc.
Condensed Consolidated Interim Statement of Changes in
Equity
For the three and nine months ended September 30, 2012 and
2011
(Canadian dollars)
(Unaudited)
Attributable to equity
owners of Silver Bear
Resources Inc.
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Total
Deficitequity
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Balance - December 31, 2010(69,356,972)13,369,242
Net loss for the period(7,010,918)(7,010,918)
Other comprehensive income (net of
tax):
Cumulative translation adjustment-(213,142)
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Comprehensive income (loss) for
the period(7,010,918)(7,224,060)
Share based payments-622,558
Options exercised-5,134
Net proceeds from issuance shares
in private placement-4,949,225
Balance - September 30, 2011(76,367,890)11,722,099
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Balance - December 31, 2011(81,881,299)6,433,124
Net loss for the period(8,044,371)(8,044,371)
Other comprehensive income (net of
tax):
Cumulative translation
adjustment-(149,446)
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Comprehensive income (loss) for
the period(8,044,371)(8,193,817)
Share based payments-843,363
Options exercised-
Net proceeds from issuance shares
in private placement-4,849,810
Warrants-393,535
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Balance - September 30, 2012(89,925,670)4,326,015
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Mark Trevisiol P.Eng, President and CEO of Silver Bear is the Company'sdesignated qualified person under National Instrument 43-101 and hasreviewed and approved the scientific and technical information inthis press release.
Silver Bear Resources Inc.
The primary business of the Company is the evaluation, acquisition,exploration and development of silver properties in the RussianFederation. The Company's principal focus is the Mangazeiskyexploration lease, over which Silver Bear has exclusive explorationrights. It is located approximately 400 kilometres north of Yakutskin the Republic of Sakha, Yakutia in the Russian Federation.
Silver Bear Resources Inc. is listed on the Toronto Stock Exchangeand its common shares trade under the ticker symbol "SBR". SilverBear has 53,866,307 issued and outstanding common shares. Otherinformation relating to Silver Bear is available on SEDAR atwww.sedar.com as well as on the Company's website atwww.silverbearresources.com.
Forward-Looking Information
This release and subsequent oral statements made by and on behalf ofthe Company may contain forward-looking statements, which reflectmanagement's expectations. Wherever possible, words such as"intends", "expects", "scheduled", "estimates", "anticipates","believes" and similar expressions or statements that certainactions, events or results "may", "could", "would", "might" or "will"be taken, occur or be achieved, have been used to identify theseforward-looking statements. Although the forward-looking statementscontained in this release reflect management's current beliefs basedupon information currently available to management and based uponwhat management believes to be reasonable assumptions, Silver Bearcannot be certain that actual results will be consistent with theseforward-looking statements. A number of factors could cause eventsand achievements to differ materially from the results expressed orimplied in the forward-looking statements. Such risks factors includebut are not limited to risks factors identified by Silver Bear in itscontinuous disclosure filings filed from time to time on SEDAR. Thesefactors should be considered carefully and prospective investorsshould not place undue reliance on the forward-looking statements.Forward-looking statements necessarily involve significant known andunknown risks, assumptions and uncertainties that may cause SilverBear's actual results, events, prospects and opportunities to differmaterially from those expressed or implied by such forward-lookingstatements. Although Silver Bear has attempted to identify importantrisks and factors that could cause actual actions, events or resultsto differ materially from those described in forward-lookingstatements, there may be other factors and risks that cause actions,events or results not to be as anticipated, estimated or intended.There can be no assurance that forward-looking statements will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,prospective investors should not place undue reliance onforward-looking statements. These forward-looking statements are madeas of the date of this release, and Silver Bear assumes no obligationto update or revise them to reflect new events or circumstances,unless otherwise required by law.
For further details, please visit www.silverbearresources.com.
Contacts:
Silver Bear Resources Inc.
Mark Trevisiol
President and Chief Executive Officer
65 Queen Street West, Suite 805, Toronto ON
mtrevisiol@silverbearresources.com
www.silverbearresources.com
SOURCE: Silver Bear Resources Inc.
mailto:mtrevisiol@silverbearresources.com
http://www.silverbearresources.com
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