Silvercrest Mines Inc (SVL)

[gharma]

SilverCrest Pays Out Gold Hedge Facility; Gold and Silver Production Now Completely Unhedged

IMO this is really good news for/from SVL.
It also implies they are seeing higher metals prices ahead.
http://ih.advfn.com/p.php?pid=nmona&article=54898397&symbol=TSXV:SVL

Date : 11/07/2012 @ 8:00AM

SilverCrest Mines Inc. (TSX VENTURE:SVL)(NYSE MKT:SVLC)(NYSE Amex:SVLC) (the "Company"), is pleased to announce that it has paid out the remaining balance of the gold hedge facility established with Macquarie Bank Limited in June, 2009 as a condition of finalizing the Project Loan Facility for the construction of the Company's Santa Elena Mine. The Company is now a completely unhedged silver and gold producer. The original hedge facility was comprised of 55,000 ounces of gold sold forward at US$926.50 per ounce and deliveries into the hedge facility were scheduled to continue into 2014. During 2010 and 2011 the Company made scheduled deliveries of 26,000 ounces of gold into the hedge facility from gold production from the Santa Elena mine leaving a balance of 29,000 ounces of gold which the Company has settled in cash for US$ 23,254,800. This reflects an effective settlement price of US$ 1,728 per ounce of gold inclusive of all transaction costs. The payout of the hedge facility was financed with partial proceeds from the Company's recent CAD$34.5 million bought deal, prospectus financing which closed on October 30, 2012.

J. Scott Drever, President stated: "We are pleased to have been able to take advantage of the recent correction in the gold price to eliminate the outstanding gold hedge. The early elimination of the gold hedge will substantially increase our cash flows from operations for 2013 and 2014 which in turn strengthens our balance sheet and increases our flexibility to pursue our corporate objectives for growth."