SilverCrest Pays Out Gold Hedge Facility Gold and Silver Production Now Completely Unhedged
VANCOUVER, BC – November 7, 2012 – SilverCrest Mines Inc. (the “Company”), is pleased to announce that it has paid out the remaining balance of the gold hedge facility established with Macquarie Bank Limited in June, 2009 as a condition of finalizing the Project Loan Facility for the construction of the Company’s Santa Elena Mine. The Company is now a completely unhedged silver and gold producer. The original hedge facility was comprised of 55,000 ounces of gold sold forward at US$926.50 per ounce and deliveries into the hedge facility were scheduled to continue into 2014. During 2010 and 2011 the Company made scheduled deliveries of 26,000 ounces of gold into the hedge facility from gold production from the Santa Elena mine leaving a balance of 29,000 ounces of gold which the Company has settled in cash for US$ 23,254,800. This reflects an effective settlement price of US$ 1,728 per ounce of gold inclusive of all transaction costs. The payout of the hedge facility was financed with partial proceeds from the Company’s recent CAD$34.5 million bought deal, prospectus financing which closed on October 30, 2012.
Just a crazy idea……..Why don’t the mining companies get together, & borrow from each other……. instead of the BANKING SHARKS…………..They could set up some kind of loan club !
You know, I kind of agree with In the Box.
Big Al
Right on! Another thought I’ve had is to offer to existing shareholder’s first right for participation, rather than go to the financial industry who take a huge guaranteed “Commission and/or Fees” plus a chunk of wharever results might trickle down to shareholders . I can’t say how many times as a shareholder I’ve been sideswiped by a “Financing Deal” by what I thought was a company with good prospects.
That is a great idea, FIH.
Listen for a DAILY EDITORIAL on this in about an hour.
Big Al
I also own shares in Hecla (HL)which is enough to try anyone’s patience. A Derivative loss turned a profitable 3rd qtr into breakeven in spite of the “Lucky Friday” being rejuvenated for safety concerns which are almost corrected. Congratulations and “kudos” to Silvercrest (SVL) for showing “Leadership” in a mining stock which is so sadly lacking in so many companies in the industry. Why on earth do the “Miners” continue to play with the “Great White Sharks” in the Financial paper game? Those Bankers can spot the “Falloffs” from the turnip truck at great distances!!!