VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 9, 2012) - SilverCrest Mines Inc. (TSX VENTURE:SVL)(PINKSHEETS:STVZF)(OTCQX:STVZF) (the "Company" or "SilverCrest") is pleased to announce that it has retired the Project Loan Facility with Macquarie Bank Limited related to the construction of the Santa Elena Mine located in Sonora, Mexico. The original amount of the loan was $12.5 million USD and the principal balance outstanding at September 30, 2011 was $7.1 million USD. The loan retirement was funded entirely with cash flow from operations and was repaid 21 months ahead of schedule.
In addition to retiring the Project Loan Facility the Company also entered into the following transactions with Macquarie Bank Limited:
-- Effective December, 2011, settled the 5,000 ounce European gold call option expiring June 13, 2012 for $3,010,609 USD which will reduce the Company's derivative instrument liability by the carrying value of $3,143,959 USD and result in a small derivative instrument gain on the transaction.-- Effective December, 2011 the Company delivered 1,141 ounces of gold in excess of the required hedge delivery schedule which reduced the required 2012 hedge delivery to 8,509 ounces of gold. As at December 31, 2011 there are 35,485 ounces of gold remaining to be delivered into the Hedging Facility during the period from 2012 to 2014.
Barney Magnusson, Chief Financial Officer stated; "Repaying the Project Loan Facility within 6 months of declaring commercial production at the Santa Elena Mine is a major milestone in the Company's development. Coupled with the early settlement of the European call option and accelerated gold ounce deliveries into the Hedging Facility we are well positioned to take advantage of anticipated robust precious metal prices in 2012."
The Company anticipates production of approximately 33,000 ounces of gold and 435,000 ounces of silver for 2012. After making the gold stream payment to Sandstorm Gold Ltd. and deliveries to the Hedging Facility the Company expects to have approximately 18,000 ounces of gold and all 435,000 ounces of silver available for delivery at spot metal prices during the year.
The above transactions strengthen the Company's free cash flow in 2012 and re-enforces the ability to carry out the Expansion Plan at the Santa Elena Mine and continue to aggressively explore the La Joya Project located in Durango, Mexico.
For further information, please refer to News Releases on the Company's website at www.silvercrestmines.com, and on SEDAR at www.sedar.com.
SilverCrest Mines Inc. (TSX VENTURE:SVL)(OTCQX:STVZF) is a Mexican precious metals producer with headquarters based in Vancouver, BC. SilverCrest's flagship property is the 100%-owned Santa Elena Mine, which is located 150km northeast of Hermosillo, near Banamichi in the State of Sonora, Mexico. The mine is a high-grade, epithermal gold and silver producer, with an estimated life of mine cash cost of US$8 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500 tonnes per day facility should recover approximately 4,805,000 ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase of the Santa Elena Mine. A three year expansion plan is underway to double metals production at the Santa Elena Mine and exploration programs are rapidly advancing the definition of a large polymetallic deposit at the La Joya property in Durango State.