Silver Bear Resources Announces Private Placement Promissory Note Financing of C$9.9 Million

Silver Bear Resources (TSX:SPR) has announced that the company has completed note restructuring and has agreed to a private placement promissory note financing valued at $9.9 million.
According to the press release:

[The company] is pleased to announce that the Company’s major shareholders, A.B. Aterra Resources Ltd. (“Aterra”) and Inflection Management Corporation (“Inflection” and together with Aterra, the “Investors”) have agreed to a series of transactions through which the maturity date of previously issued US$7,000,000 non-convertible promissory notes has been extended to March 31, 2016, and other existing convertible debt and interest thereon (together with the new funding of C$6,600,000 provided today) has been consolidated into two instruments issued to Inflection and Aterra with principal amounts of C$12,350,769.86 and C$5,669,806.85, respectively. Inflection has agreed to provide a further C$3,300,000 by way of a non-convertible promissory note the issuance of which is subject to shareholder approval at a special meeting of shareholders to be held on January 11, 2016.
These transactions have been negotiated on an arm’s-length basis and unanimously approved by the Company’s independent directors. It is the view of the Company’s management and directors that these transactions will provide Silver Bear with additional financing to bridge ordinary course liabilities as they become due and defer payment of certain principal amounts in order to allow the Company to maintain its development activities at the Mangazeisky Silver Project site as they seek the remaining project financing.
Silver Bear’s CEO, Graham Hill commented: “As we prepare for the next phase of development at Mangazeisky, that will involve the transportation of construction supplies and the long-lead items via our 2016 resupply winter road, we are once again very grateful to our two major shareholders for their continued support. The extensions granted today, and additional funding, will provide the means and time to implement a full project financing solution in 2016 for the benefit of all shareholders of Silver Bear.”

Click here to read the full press release.