Vancouver, B.C. - Bear Creek Mining (TSX Venture: BCM) (“Bear Creek” or the “Company”) announces that it has implemented additional cost-reduction measures in order to conserve the Company’s strong cash position while preserving the Company’s abilities to solidly move its Corani project forward, including completion of a modified and optimized feasibility study expected in the first quarter of 2015 as well as to continue negotiations with the Peruvian government for a settlement in relation to its Santa Ana project (see news release dated August 12, 2014). The Company has focused on reducing expenditures since 2011; however, the following measures significantly further that effort and support additional cost savings in the order of US$4M per year allowing for further preservation of the Company’s US$43M cash as of the second quarter of 2014. The Company may evaluate further reductions as market conditions require; however management feels that Bear Creek is in a good cash position to complete the objectives described in this news release and prolong its treasury as long as necessary.
Exploration - Generative exploration is being eliminated; however, opportunities will continue to be evaluated by management. In light of this, the Company is eliminating the position of VP Exploration and the Company’s exploration staff is being reduced to just cover the minimal joint venture obligations on the La Yegua and Sumi projects, which such costs are incurred under a joint venture agreement with Japan Oil, Gas and Metals National Corporation. Christian Rios, previously Vice President of Exploration, will continue to contribute to Bear Creek under a consulting agreement on an as needed basis. Limited staff will be retained on the Maria Jose high-grade gold mesothermal vein system until an appropriate joint venture partner can be secured under an agreement which will allow Bear Creek to recover its investment and participate in future revenues if the project is successfully brought into production.
Andrew Swarthout, President and CEO, states “Bear Creek was originally established as, and owes its success, to its exploration roots. We regret that current market conditions cause us to reduce this component; however the Company’s mandate is to create shareholder value, and we are committed to conserve cash while moving our projects containing over 330M ounces of silver in Proven and Probable reserves defined by two feasibility studies towards permitting and production. We are deeply appreciative of Christian Rio’s efforts over the past 10 years. His leadership has added significant value to the Company’s principle assets, the Corani and Santa Ana projects, through enhancing our scientific understandings of the Corani metallurgical aspects and the opportunities for upside at Santa Ana.”
General Staff - The reductions in exploration noted above are expected to allow for additional staff reductions in support areas such as accounting and logistical support, as well as legal cost reductions. The Company has also identified other positions which can be eliminated which do not affect Bear Creek’s primary objectives, which continue to be to preserve our abilities to complete the updated and optimized Corani feasibility study by Q1 2015, complete Corani permitting, comply with our community obligations at Corani, and remain committed to the resolution of the Santa Ana dispute.
Corani Feasibility Study - The Company is pleased to announce that the Corani optimized and updated feasibility study remains on track for completion, and is now expected to occur in Q1 2015. CapEx reductions, specifically regarding dry-stacking of tailings in lieu of a tailings dam facility, are being incorporated into a modified project design, which, in conjunction with other optimization parameters, are anticipated to save in the order of $150M in capital expenditures while minimally impacting OpEx costs or designed metal output of over 13M ounces/year silver (see news release dated September 8, 2014). The updated Corani feasibility study is expected to allow the Company to seek permitting and further pursue project financing alternatives starting in the first half of 2015.
All scientific and technical information contained in this news release has been reviewed and approved by Andrew Swarthout, P.Geo., the President and Chief Executive Officer of the Company, who is a “qualified person” within the meaning of National Instrument 43-101.
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.
- End -
Cautionary Note regarding Forward-Looking Statements:
This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to (i) the Company’s plans to continue discussions with the Peruvian government and local communities for a settlement of the dispute in relation to the Santa Ana Project, (ii) the Company’s plans to pursue any claims with regard to its projects in Peru, including, without limitation, any claims before an international tribunal, (iii) the Company’s intentions to complete any environmental and social impact assessment or permitting application, (iv) the planned development of the Corani and Santa Ana projects, including the timing thereof, and (v) expenditure reductions. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” 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 and similar expressions) are not statements of historical fact and may be forward-looking statements.
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 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 beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation, risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals and minerals markets; risks relating to fluctuations in the Canadian dollar relative to other currencies; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to global market conditions and the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors, changes in project parameters as plans continue to be refined; risks relating timing and to receipt of regulatory approvals; adverse changes to government approval processes; the effects of competition in the markets in which the Company operates; operational and infrastructure risks; and the additional risks described in the Company’s Annual Information Form, annual financial statements and management’s discussion and analysis for the year ended December 31, 2013 and in the feasibility study entitled “Corani Project, Form 43-101F1 Technical Report, Feasibility Study” filed by the Company on December 22, 2011 filed on the SEDAR website in Canada (available at www.sedar.com). The foregoing list of factors that may affect future results is not exhaustive.
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.