SilverCrest Mines Inc. Revises Letter

VANCOUVER, BC - SilverCrest Mines Inc. reported that it has entered into an amended and restated letter of intent with Sandstorm Resources Ltd. (Sandstorm). The terms of the original letter of intent enabled Sandstorm to acquire 20% of the future life of mine gold production from SilverCrest's Santa Elena project (the "Santa Elena Project") located in Mexico by providing US$12 million in development financing ("up-front payment") plus ongoing payments and at SilverCrest's option, debt financing of up to US$6 million.
The amended and restated letter of intent now includes the issuance to SilverCrest of 3,500,000 common shares of Sandstorm as part of the upfront consideration. Sandstorm is no longer obligated to provide a senior secured convertible US$6.0 million loan to SilverCrest. However, Sandstorm, on a best efforts basis, will assist SilverCrest in securing debt on its project on comparable terms. The letter of intent still provides for the acquisition by Sandstorm of 20% of the life of mine gold production from SilverCrest's Santa Elena Project for an upfront payment of US$12 million in cash plus ongoing per ounce payments equal to the lesser of (a) US$350 (which approximates SilverCrest's cash cost of production) and is subject to an increase equal to 1% per annum commencing on the third anniversary of the date that the Santa Elena Project begins commercial production and (b) the then prevailing market price per ounce of gold.
The company’s address is 1311 Howe Street, Suite 405, Vancouver, BC V6Z 2P3, (604) 691-1730, fax: (604) 691-1761, email: [email protected].