Sandstorm, Equinox participate in Bear Creek financing

Bear Creek Mining Corp. [BCM-TSXV, BCEKF-OTCQX, BCM-BVL] said it has raised $14.5 million from a bought deal private placement of 64.4 million shares, priced at 22.5 cents per share.

Bear Creek shares advanced on the news, rising 2.43% or $0.005 to 21 cents. The shares trade in a 52-week range of 70 cents and 19 cents.

The company said it intends to use net proceeds of the offering to support exploration and resource drilling at the company’s Mercedes mine in Mexico, to build a ventilation raise bore and secondary escape way at the Marianas deposit at Mercedes to ensure safe production; and for general working capital purposes, the latter of which will include reducing Mercedes’s trade payables over the next quarter.

Sandstorm Gold Ltd. [SSL-TSX, SAND-NYSE American] and Equinox Gold Corp. [EQX-TSXV, EQX-NYSE] both participated in the offering. Sandstorm and Equinox bought 32.2 million shares each on a gross basis or 12.9 million on a net basis after each the companies concurrently disposed of 19.3 million shares to an arms-length third party at the offering price immediately prior to closing. Bear Creek did not receive any proceeds from the concurrent sale.

Following the concurrent sale and the offering, Sandstorm and Equinox hold 58.4 million and 38.3 million shares respectively, representing 19.98% and 13.10%, respectively of the total issued and outstanding shares on a non-diluted basis.

The offering did not result in the creation of a new control person (as defined by the policies of the TSX Venture Exchange). The concurrent sale was a condition precedent to the closing of the offering.

In a press release on March 4, 2025, Bear Creek Mining said its board of directors has initiated a comprehensive and thorough strategic review process to explore and evaluate, on an expeditious basis, the strategic and financial options available to the company. The company said the board has also established a special committee of independent directors to manage the process.  Christian Milau, who has been engaged as a strategic advisor, will advise the special committee and the board as the company carries out the process. Milau was the CEO of Equinox Gold from 2016 to 2022.

“Production from the Mercedes mine decreased during Q4, 2024 as we continued the transition from mining at San Martin, a bulk-mineable deposit and the biggest contributor to production during 2024, into other areas of the Mercedes operation,’’ said Bear Creek President and CEO Eric Caba. In the 2024 full year, Mercedes produced 217,675 ounces of silver and 40,220 ounces of gold.

Further to the company’s March 4, 2025 news release, Bear Creek has announced that {i} the amending agreements with each of Sandstorm and Equinox to temporarily defer payments of interest under certain outstanding debt arrangements; and {ii} the extension of up to US$6.5 million in additional credit to the company from Sandstorm under and amended and restated secured promissory note each remain subject to the approval  and acceptance by the TSX Venture Exchange.