VANCOUVER, Nov. 14, 2016 /PRNewswire/ - Bear Creek Mining Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company") announces it has selected GMI SA Ingenieros Consultores ("GMI"), a company owned by the prominent Peruvian engineering and construction firm Graña y Montero Group ("G&M"), to undertake Phase I Detailed Engineering work at the Corani silver-lead-zinc project in Peru. GMI will work with Bear Creek to fine-tune the Corani engineering design, which will form the basis of the Company's application for a Construction Permit. The Corani Phase I Detailed Engineering is a key component of the use of proceeds of the Company's July 2016 Short Form Prospectus financing (see Bear Creek news release dated July 26, 2016).
Andrew Swarthout, President and CEO of Bear Creek, states, "We are very pleased to have the opportunity to partner with G&M, one of the largest and most respected Peruvian engineering and construction firms. G&M along with its subsidiaries has both the breadth and depth of experience to deliver exceptional service in not only engineering design but also in permitting, construction of mining operations, bulk earth moving and contract mining, as demonstrated by their track record of very successful construction and operation outcomes at the Cerro Verde, Las Bambas, La Arena, Shauhuindo and Constancia mining projects in Peru. We look forward to working with G&M's highly qualified team as we complete this important milestone in the development of the Corani project; one of the largest undeveloped silver mines in the world."
The Phase I Detailed Engineering work will commence in mid-November and is expected to require 6 months to complete at a cost of approximately US $3.2 million (including taxes). It will establish final processing flow sheets, equipment lists, mine sequencing optimization and updated CapEx and OpEx cost estimates for the Corani project based on a projected 2018 construction start up time frame, and will be used to support the Company's application for a Construction Permit. Concurrently, the Company will engage a project finance consultant with whom it will work to develop a financing structure for the Corani project. The Company expects the Phase I Detailed Engineering to be completed by the end of Q2 2017 and the Construction Permit and project financing to be in place by mid- to late-2017 such that a construction decision could be made before the end of 2017 (which decision will be contingent upon successful project financing, securement of all necessary permits, and market conditions). Bear Creek and G&M have indicated a mutual interest in considering various partnership structures for construction and operation of the Corani mine, which will be further contemplated upon completion of the Phase I Detailed Engineering.
Bear Creek also reports that the Company has submitted an application to the Peruvian Ministry of Energy and Mines ("MEM") for accelerated recovery of the 18% value added tax (IGV) that applies to the Company's planned future investments in the Corani project. Pending approval of the application, a contract with the MEM will be executed after which the Company will be able to recover, on an expedited basis, the IGV taxes associated with its Corani capital investments as described in the approved ESIA and the 2015 Corani Feasibility Study (available at www.sedar.com). Accelerated recovery of IGV taxes is expected to reduce the Initial CapEx requirements for the Corani project, including those costs associated with the Phase I Detailed Engineering.
On behalf of the Board of Directors,
President and CEO
Bear Creek's exploration programs are overseen by, and disclosure of a technical or scientific nature has been reviewed and approved by, Andrew Swarthout, AIPG Certified Professional Geologist, President and CEO of the Company and a Qualified Person as defined in NI 43-101. Mr. Swarthout has read, verified and approves such information disclosed in this release.
This news release contains forward-looking information and forward-looking statements related to the timing of commencement and completion of the Phase I Detailed Engineering, timing of a possible Corani Project construction decision and commencement of construction, the engagement of a project finance consultant, the potential for future contractual arrangements with G&M, the possibility for successfully negotiating a contract for accelerated recovery of Peruvian IGV taxes, and the anticipated effect of an IGV contract on Initial CapEx requirements for Corani. Certain of these forward-looking statements are contingent upon various assumptions, including that the Phase 1 Detailed Engineering results will provide sufficient information for the Construction Permit application, and that the Company is eligible for accelerated IGV tax recovery, and upon future events transpiring, including that the Company is able to obtain all necessary permits and secure project financing for the Corani project. This forward-looking information is provided as of the date of this news release and reflects current estimates, predictions, expectations or beliefs regarding future events and is based on the Company's or its consultants' beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. 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 on which they are based 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 expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions and estimates used to make such forward-looking statements do not occur and the additional risks described in the Company's most recent Annual Information Form. 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.
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.
SOURCE Bear Creek Mining Corporation