Pan American completes successful debenture conversion and repays all its bank debt
May 25 2004 - 9:30AM
PR Newswire (US)
Pan American completes successful debenture conversion and repays
all its bank debt (all amounts in $US unless otherwise stated)
VANCOUVER, May 25 /PRNewswire-FirstCall/ -- Pan American Silver
Corp. (PAAS: NASDAQ; PAA: TSX) is pleased to announce that its
conversion offer to holders of its 5.25% convertible debentures has
resulted in conversion of approximately $85.4 million or 99% of the
$86.25 million of debentures. Pan American has also prepaid the
$9.5 million La Colorada construction loan from the International
Finance Corporation. The early repayment of this loan and the
Huaron loan repaid in April will eliminate Pan American's bank debt
and save the Company approximately $500,000 in annual net interest
expense. The Company remains in excellent financial condition with
$120 million in cash and only $.85 million in outstanding
convertible debentures. According to the Company's Chairman, Ross
Beaty, "I am very pleased that we have completed the debenture
conversion so successfully and have eliminated our bank debt. All
of our silver mines are generating positive cash flow and our
balance sheet has never been in better condition. We will continue
to implement our aggressive growth plans to solidify our position
as the world's pre-eminent silver mining company." For Further
Information Contact: Brenda Radies, VP Corporate Relations (604)
684-1175 http://www.panamericansilver.com/ CAUTIONARY NOTE Some of
the statements in this news release are forward-looking statements
and as such are based on an assumed set of economic conditions and
courses of action. These include estimates of future production
levels, expectations regarding mine production costs, expected
trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. There is a
significant risk that actual results will vary, perhaps materially,
from results projected depending on such factors as changes in
general economic conditions and financial markets, changes in
prices for silver and other metals, technological and operational
hazards in Pan American's mining and mine development activities,
uncertainties inherent in the calculation of mineral reserves,
mineral resources and metal recoveries, the timing and availability
of financing, governmental and other approvals, political unrest or
instability in countries where Pan American is active, labor
relations and other risk factors listed from time to time in Pan
American's Form 40-F. DATASOURCE: Pan American Silver Corp.
CONTACT: Brenda Radies, VP Corporate Relations, (604) 684-1175,
http://www.panamericansilver.com/
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