Silver Bear Resources and its wholly owned subsidiary Prognoz will secure a funding from Inflection Management and AB Aterra Investments for the final development, construction and commissioning of the Mangazeisky silver project in Russia.

Pursuant to the agreement, the lenders will provide $55.2m in loans comprising three tranches to the company and its subsidiary.

Tranche A will consist of a term loan facility of $43.2m, Tranche B will comprise a $10m working capital facility, and Tranche C will include a facility of $2m.

"Finalising this agreement is a significant milestone for the company."

Silver Bear Resources CEO Graham Hill said: "Finalising this agreement is a significant milestone for the company and major catalyst in providing the financial support to advance Vertikalny towards commissioning in the fourth quarter of this year."

Silver Bear plans to use a portion of the loan facility to repay the principal and accrued interest on certain outstanding promissory notes that were issued by the company to the lenders earlier.

The loan will also result in net new funding of approximately $22m to the company and Prognoz, following the repayment of the promissory notes.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The project covers a licence area of roughly 570km², which includes the Vertikalny deposit located 400km north of Yakutsk in the Republic of Sakha.

In September 2013, the company secured a 20-year mining licence for the deposit and later completed a feasibility study in the second quarter of this year.

The company plans to complete major construction of the Mangazeisky silver project by the end of this year with production planned to start in the first quarter next year.