Aterra Investments Acquires Additional Units of Silver Bear Resources

TORONTO, Oct. 22, 2013 /CNW/ - Aterra Investments Limited ("Aterra") announces that effective October 21, 2013 it purchased 3,846,153 units ("Units") of Silver Bear Resources Inc. ("Silver Bear") at a price of $0.13 per Unit pursuant to the first tranche of a two tranche private placement and agreed, subject to the satisfaction of certain closing conditions, to purchase an additional 13,461,538 Units in the second tranche. Each Unit consists of one common share of Silver Bear and one common share purchase warrant exercisable at a price of $0.245 per warrant until the second anniversary of its date of issuance.  Aterra acquired 3,846,153 common shares (the "First Tranche Shares") and 3,846,153 warrants (the "First Tranche Warrants") upon the closing of the first tranche of the private placement, and subscribed for an additional 13,461,538 common shares (the "Second Tranche Shares") and 13,461,538 warrants (the "Second Tranche Warrants") to be acquired upon the closing of the second tranche. The second tranche closing is subject to, among other things, Silver Bear obtaining required corporate, regulatory and shareholder approvals, each to be satisfied not later than January 31, 2014.  The First Tranche Shares represent 5.5% of the 70,163,410 issued and outstanding common shares immediately upon the completion of the first tranche private placement and the Second Tranche Shares will represent 14.2% of the estimated 95,117,256 issued and outstanding common shares upon the completion of the second tranche, assuming no other new issuances of common shares by Silver Bear at or prior to such time.

In addition to the First Tranche Shares and First Tranche Warrants, Aterra owns 5,513,888 common shares and warrants to purchase an additional 569,444 common shares.

Upon the closing of the first tranche, assuming Aterra were to exercise all its First Tranche Warrants and previously owned warrants, and assuming no other new issuances of common shares by Silver Bear at or prior to such time, Aterra would acquire 3,846,153 common shares upon exercise of the First Tranche Warrants and 569,444 common shares upon the exercise of the existing warrants, representing approximately 5.2% and 0.8%, respectively, of the then outstanding common shares. The common shares acquired upon such exercise, together with the First Tranche Shares and the previously owned shares, would amount in aggregate to 13,775,638 common shares, representing approximately 18.5% of the then outstanding common shares.

Upon the closing of the second tranche, if Aterra were to also exercise all of its Second Tranche Warrants, and taking into account the number of common shares disclosed by Silver Bear as to be issued to all purchasers pursuant to the second tranche closing, but assuming no other new issuances of common shares by Silver Bear at or prior to such time, Aterra would acquire 13,461,538 common shares upon the exercise of the Second Tranche Warrants, representing approximately 11.9% of the then outstanding common shares.  The common shares acquired upon such exercise, together with the common shares acquired upon the exercise of the First Tranche Warrants and the previously owned warrants, and the First Tranche Shares, Second Tranche Shares and previously owned shares, would amount in aggregate to 40,698,714 common shares, representing approximately 36.0% of the then outstanding common shares.

Aterra subscribed for the Units for investment purposes and continues to monitor the business, prospects, financial condition and potential capital requirements of Silver Bear.  Depending on its evaluation of these and other factors, Aterra may from time to time in the future increase or decrease its ownership, control or direction over the shares or other securities of Silver Bear through market transactions, private agreements, subscriptions from treasury or otherwise.

SOURCE: Aterra Investments Limited