VANCOUVER,
Oct. 15,
2014 /PRNewswire/ - 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.
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.
SOURCE Bear Creek Mining Corporation
