United Silver Corp. (TSX: USC) Announces Operational Changes and Private Placement
July 04 2011 - 8:32AM
Marketwired
United Silver Corp. ("United Silver Corp.", the "Company" or "USC")
(TSX: USC)(OTCQX: USCZF)(FRANKFURT: UM8) announces that after a
strategic review of its current share price, resources, exploration
and pre-production mine development programs, its Board of
Directors has decided to initiate a comprehensive evaluation of
potential financial alternatives available to the Company.
The Company also announces that in managing the immediate and
near-term capital requirements of the Crescent Silver Mine project,
the Board has elected to temporarily halt pre-production mine
operations and exploration while it conducts its review of
financial proposals, including bridge equity and non-equity
financing options, from a select group of interested parties. Based
on market analysis and independent reports, the Board and
Management of United Silver Corp. believe the fundamentals of the
silver market remain supportive for near-term development
opportunities such as the Crescent Silver Mine.
United Silver Corp. does not intend to disclose developments
with respect to any negotiations or the strategic review process
unless and until its Board of Directors has approved a specific
course of action. The Company will continue open discussions with
qualified parties which may or may not result in the announcement
or completion of any specific transaction. The Company's wholly
owned subsidiary United Mine Services, Inc. which provides contract
mining services in Northern Idaho, will continue to operate as
business as usual.
Private Placement
As part of its strategic review, the Company announces a Private
Placement of up to USD $1,000,000 (the "Private Placement") in
Unsecured Convertible Notes (the "Notes"). The terms of the Notes
are as follows:
-- Six months maturity;
-- Convertible at the option of the holder into common shares of the
Company at a rate of USD 0.625 per share (the "Conversion Rate");
-- Five per cent annualized interest payable at maturity in cash, or, if
converted, in common shares of the Company at the Conversion Rate;
-- For each $1000 principal amount of the notes, the Company will issue
1,600 warrants to purchase common shares at USD 0.75 per share for a
period of five years; and
-- Pre-emptive rights to participate pro rata in future corporate
financings while the Notes are outstanding.
Participants in the Private Placement include Management and
members of the Board of Directors of the Company, as well as
unrelated parties. The completion of the private placement is
subject to the approval of the Toronto Stock Exchange and all other
necessary regulatory approvals.
ABOUT UNITED SILVER CORP.
United Silver Corp. is currently earning, through development
and operations, an 80% interest in the Crescent Silver Mine project
in Idaho's prolific Silver Belt - directly between two of the
world's historically largest silver producing properties, the
Sunshine and Bunker Hill mines. The Crescent Silver Mine project
has historically produced 25 million ounces of silver at an average
grade of 27.0 opt (Crescent Mine Updated NI 43-101 Technical Report
on Resources, March 1, 2010). USC also owns United Mine Services,
Inc. a successful mining service contractor. The Company trades on
the Toronto Stock Exchange under the symbol "USC". For more
information about the Company, please visit:
www.unitedsilvercorp.com.
ON BEHALF OF UNITED SILVER CORP.
Graham M. Clark Jr., Chief Executive Officer
FORWARD LOOKING STATEMENTS: This press release contains
forward-looking statements, which address future events and
conditions, which are subject to various risks and uncertainties.
Forward looking statements in this press release include that: we
can complete a private placement of up to $1,000,000 and that we
can restart mine and exploration operations when we have completed
our assessment. The Company's actual results and financial position
could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of
which may be beyond the Company's control. These factors include:
results of exploration activities and development of mineral
properties, estimation of mineral reserves and resources,
fluctuations in the marketplace for the sale of minerals, the
inability to implement corporate strategies, the inability to
obtain financing, the inability to obtain any necessary permits or
other required regulatory approvals for the company's financings or
mineral projects as and when needed; the inability to agree with
joint venture or other key partners on important items, labour
shortages, the inability to keep key employees, currency
fluctuations, general market and industry conditions and other
risks disclosed in the Company's filings with Canadian Securities
Regulators.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of the content of this news release.
Contacts: United Silver Corp. Cathy Hume CHF Investor Relations
(416) 868-1079 x231 cathy@chfir.com www.unitedsilvercorp.com