|By PR Newswire||
|April 17, 2014 12:37 PM EDT||
TORONTO, April 17, 2014 /CNW/ - Aterra Investments Limited ("Aterra") announces that in connection with a private placement offering ("Offering") of up to 64,705,882 common shares of Silver Bear Resources Inc. ("Silver Bear") it has entered into a subscription agreement to, subject to certain closing conditions, subscribe for 17,647,000 common shares of Silver Bear (the "Subscribed Shares"). The Offering will be completed in two tranches and the Subscribed Shares will be acquired by Aterra as part of the second tranche. The acquisition of the Subscribed Shares is conditional upon, amongst other things, Silver Bear obtaining minimum gross proceeds of $10,000,000 from the Offering (including the proceeds received in connection with the Subscribed Shares) and Silver Bear obtaining required regulatory and shareholder approvals, with the closing of Aterra's subscription for the Subscribed Shares to occur not later than June 30, 2014. The Subscribed Shares will represent approximately 11.0% of the estimated 160,462,432 issued and outstanding common shares upon the issuance of both tranches, assuming the Offering is fully subscribed and no other new issuances of common shares by Silver Bear at or prior to such time.
In addition to the Subscribed Shares, Aterra owns 22,821,579 common shares (the "Owned Shares") and warrants (the "Owned Warrants") to purchase an additional 17,877,135 common shares.
Upon the closing of the second tranche, assuming that the Offering is fully subscribed, that Aterra were to exercise all its Owned Warrants, and assuming no other new issuances of common shares by Silver Bear at or prior to such time, the Subscribed Shares, together with the Owned Shares and the common shares acquired upon the exercise of the Owned Warrants, would amount in aggregate to 58,345,714 common shares, representing approximately 32.7% of the then outstanding common shares.
Aterra subscribed for the Subscribed Shares 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