TSX: SIL | NYSE American: SILV

 In anticipation of creating a closing development determination primarily based on a Feasibility Examine (“Feasibility Examine”) for the Las Chispas Venture (“Las Chispas”), SilverCrest Metals Inc. (“SilverCrest” or the “Firm”) is happy to announce that its Canadian subsidiary has entered right into a credit score settlement (the “Credit score Settlement”) with an affiliate of RK Mine Finance (“RK”) to supply a secured mission financing facility (the “Facility”) for a complete of US$120 million for the aim of funding the development of Las Chispas. Concurrently, one of many Firm’s Mexican subsidiaries has entered into a set worth Engineering, Procurement and Development contract (the “EPC Contract”) with Ausenco Engineering Canada Inc. (“Ausenco”), and certainly one of its associates, for development of the Las Chispas course of plant. Whereas the Feasibility Examine continues to be pending finalization by Ausenco, with announcement of outcomes focused for late January 2021 SilverCrest is assured coming into into the Credit score Settlement and the EPC Contract primarily based on the substantial feasibility data presently out there. Nonetheless, within the absence of a feasibility research of mineral reserves demonstrating financial and technical viability, there’s elevated uncertainty and traditionally the next financial and technical danger of failure related to the event of a commercially mineable deposit till such time because the Feasibility Examine has been accomplished.  See “EPC Contract and Feasibility Examine” beneath.

Highlights:

Venture Finance Facility

• US$120 million Facility with a complete price of capital of roughly 10% (check with particulars beneath);
• Facility doesn’t require necessary hedging, money sweeps, offtakes, manufacturing linked funds or fairness issuances as a part of its construction;
• US$30 million of the Facility has been drawn, and subsequent drawdowns can be found upon satisfaction of sure customary circumstances precedent. Drawdowns aren’t tied to any development milestones;
• Facility has a four-year time period with a 20-month availability interval if 50% of the Facility is drawn or dedicated to be drawn inside six months ( June 30, 2021 ) and 75% of the Facility is drawn inside 12 months ( December 31, 2021 );
• As much as US$30 million of the Facility can be utilized for exploration and regional acquisitions; and
• US$90 million remaining on the Facility, plus estimated money at year-end of US$135 million , will present a considerable element of funding for development, exploration and regional development initiatives.

EPC Contract

• Lump sum turnkey worth of US$76.5 million will embody development of a 1,250 tonne per day course of plant at Las Chispas;
• Execution of Ausenco’s scope of labor will start in February 2021 , and commissioning of the method plant is focused for Q2 2022, with manufacturing ramp-up beginning in Q3 2022;
• The development execution plan contains stringent COVID-19 protocols together with the usage of a confined single room occupancy camp, designed to restrict the potential for a virus outbreak on the web site and within the native communities; and
• The EPC Contract represents a portion of the whole scope of the deliberate development however doesn’t embody growth of the underground mine, confined camp, powerline, dry stack tailings facility, institution of an analytical laboratory in the local people or the proprietor’s web site prices.

N. Eric Fier , CPG, P.Eng and CEO, remarked, “We’re very happy to have concurrently signed the Credit score Settlement and the EPC Contract with two well-established and revered companions within the mining business. The dedication by each companions forward of the focused January 2021 launch of the Las Chispas Feasibility Examine speaks to the energy of our staff and mission. Whereas we acknowledge the challenges of constructing throughout this unprecedented time, we imagine the strict and efficient COVID-19 protocols that we have now applied on web site, that are highlighted in these two necessary agreements, restrict our danger. This information marks one other necessary milestone on our path to manufacturing at Las Chispas.”

Pierre Beaudoin , COO, remarked, “We’re happy to be working with Ausenco, a widely known and revered engineering agency with substantial international expertise in designing, setting up, and commissioning valuable steel course of services. Now we have been working carefully with Ausenco to finish the EPC Contract and the Feasibility Examine in shut succession.  We’re assured that their intimate data of the mission will profit the profitable development and commissioning of Las Chispas.”

Venture Finance Facility

Key phrases of the Credit score Settlement embody:

• US$120 million facility with preliminary 25% drawdown full at shut on December 31, 2020 (“Closing”)
• Subsequent drawdowns out there upon satisfaction of sure customary circumstances precedent, however subsequent drawdowns aren’t tied to any development milestones
• No requirement for hedging, money sweeps, offtakes, manufacturing linked funds, shares or warrants
• Time period of 4 years
• Principal repaid on the fourth anniversary of Closing ( December 31, 2024 )
• Voluntary prepayment at any time, topic to prepayment price (4% earlier than yr 1; 3% for years 1 to three; and 1.5% past yr 3)
• The Facility has an availability interval of as much as 20 months if:
• 50% or larger of the Facility is drawn or dedicated to be drawn inside six months of Closing, and
• 75% or larger of the Facility is drawn inside 12 months of Closing
• Rate of interest of 6.95% plus the larger of 3-month LIBOR (or agreed upon equal) or 1.5%
• Curiosity payable quarterly, with choice to accrue through the availability interval
• 3% association price paid upon Closing of the Credit score Settlement
• As much as US$30 million of the Facility can be utilized for exploration and acquisitions inside Sonora, Mexico

EPC Contract and Feasibility Examine

The EPC Contract with Ausenco locks in a set worth of US$76.5 million for development of a 1,250 tonne per yr course of plant at Las Chispas. Ausenco will start development in February 2021 , because the SilverCrest managed earthworks program for the method plant nears completion. Commissioning of the method plant is focused for Q2 2022 and manufacturing ramp-up is slated to start in Q3 2022.

Ausenco is finishing the Las Chispas Feasibility Examine and progressing detailed engineering and the development administration plan. Detailed engineering is progressing properly at roughly 60% completion and procurement of lengthy lead objects began in This autumn 2020. Advancing these applications in parallel has allowed Ausenco to develop complete capital and working price estimates for Las Chispas whereas progressing detailed engineering past what’s customary at a Feasibility Examine degree. The disruption brought on by the COVID-19 pandemic additionally allowed SilverCrest to provoke an Early Works program tailor-made to additional scale back mission execution dangers. This program included the earthworks package deal, the water pumping system, and the primary section of the development camp. The development of the Early Works program coupled with the mounted worth nature of the EPC Contract reduces many frequent development, and market-related dangers.

Past the duties included within the EPC Contract, the remaining preliminary capital prices anticipated for Las Chispas development will embody:

• Improvement prices of the underground mine;
• Proprietor’s web site prices;
• On-site infrastructure together with Section 2 of the confined development camp, a bridge and the filtered (dry-stack) tailings system facility;
• A brand new 33 kV, 49 km lengthy powerline to interchange the proposed diesel energy technology, initially contemplated within the Las Chispas 2019 Preliminary Financial Evaluation, efficient Could 15, 2019 , as amended July 19, 2019 , to supply higher long-term economics and a discount in greenhouse gas-emissions; and
• An analytical laboratory positioned in the neighborhood, as a substitute of on-site, to supply extra native employment.

Particulars of the prices past the EPC contract will probably be offered within the upcoming Feasibility Examine.

Within the absence of the Feasibility Examine of mineral reserves demonstrating financial and technical viability, there stays elevated uncertainty and traditionally the next financial and technical danger of failure related to the event of a commercially mineable deposit till such time because the Feasibility Examine has been accomplished.  These dangers embody, amongst others, areas which might be analyzed intimately in a feasibility research, corresponding to making use of financial evaluation to sources and reserves, extra detailed metallurgy and quite a lot of specialised research in areas corresponding to mining and restoration strategies, market evaluation, and environmental and group impacts.

SilverCrest’s Canadian authorized counsel for the agreements have been Cassels Brock & Blackwell LLP and Koffman Kalef LLP. Urias Romero Y Asociados, S.C. acted as SilverCrest’s Mexican counsel.

ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian valuable metals exploration firm headquartered in Vancouver, BC , that’s targeted on new discoveries, value-added acquisitions and concentrating on manufacturing in Mexico’s historic valuable steel districts. The Firm’s present focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico . The Las Chispas Venture consists of 28 mineral concessions, of which the Firm has 100% possession of the place all of the sources are positioned. SilverCrest is the primary firm to efficiently drill-test the historic Las Chispas Property leading to quite a few high-grade valuable steel discoveries. The Firm is led by a confirmed administration staff in all points of the valuable steel mining sector, together with taking tasks via discovery, finance, on time and on price range development, and manufacturing.

ABOUT RK MINE FINANCE
RK Mine Finance gives bespoke financing options to mining firms together with bridge finance, development finance, growth funding, working capital and acquisition services. RK has a robust observe report of supporting mining firms with their financing wants and since its inception has supplied dedicated capital of over $2.0 billion . Additional data on RK might be discovered at www.rkminefinance.com .

ABOUT AUSENCO
Ausenco is a world firm redefining what’s potential. Our staff relies throughout 26 workplaces in 14 international locations, with tasks in over 80 places worldwide. Combining our deep technical experience with a 30-year observe report, we offer modern, value-add consulting and engineering research and mission supply, asset operations and upkeep options to the mining & metals, oil & fuel and industrial sectors.

FORWARD-LOOKING STATEMENTS
This information launch comprises “forward-looking statements” inside the which means of Canadian securities laws. These embody, with out limitation, statements with respect to: the strategic plans, timing and expectations for the Firm’s exploration, growth and development actions on the Las Chispas Property, together with completion of the Feasibility Examine, the power to finish additional drawdowns beneath the Credit score Settlement, the prices and timing of development related to the EPC Contract and the timing of completion of the method plant and manufacturing ramp up. Such ahead wanting statements or data are primarily based on quite a lot of assumptions, which can show to be incorrect. Assumptions have been made concerning, amongst different issues: impression of the COVID-19 pandemic; the reliability of mineralization estimates, he availability of extra drawdowns beneath the Credit score Settlement, completion of the Feasibility Examine, the circumstances basically financial and monetary markets; availability of expert labour; timing and quantity of expenditures associated to rehabilitation and drilling applications; and results of regulation by governmental companies. The precise outcomes may differ materially from these anticipated in these forward-looking statements because of danger components together with: uncertainty as to the impression and period of the COVID-19 pandemic; the timing and content material of labor applications; continuing with the EPC Contract with out completion of the Feasibility Examine, the provision of funds beneath the Credit score Settlement and in any other case, outcomes of exploration actions; the interpretation of drilling outcomes and different geological information; receipt, upkeep and safety of permits and mineral property titles; environmental and different regulatory dangers; mission price overruns or unanticipated prices and bills; and normal market and business circumstances. Ahead-looking statements are primarily based on the expectations and opinions of the Firm’s administration on the date the statements are made. The assumptions used within the preparation of such statements, though thought of affordable on the time of preparation, might show to be imprecise and, as such, readers are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date the statements have been made. The Firm undertakes no obligation to replace or revise any forward-looking statements included on this information launch if these beliefs, estimates and opinions or different circumstances ought to change, besides as in any other case required by relevant legislation.

N. Eric Fier , CPG, P.Eng
Chief Government Officer
SilverCrest Metals Inc.

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SOURCE SilverCrest Metals Inc.

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