Scorpio Mining Debt Free with Repayment of Debentures
NOT FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, May 5, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio
Mining" or the "Corporation") announces that it has executed
payment of CDN $20 million to retire fully all issued and outstanding 7%
unsecured subordinated convertible debentures of the Corporation (the
"Debentures"), which matured on May 5, 2011. The payments were made
using funds generated by the Corporation from its Nuestra
Se�ora operation in Sinaloa State, Mexico. By
repaying the Debentures the Corporation is now completely debt free.
Parviz Farsangi, President
and CEO, states: "It is the solid performance of the Nuestra
Se�ora operation in the last two consecutive quarters
that has allowed the Corporation to eliminate its debt. We are confident we
will meet our 2011 commitments as previously stated, and continue to grow
through development of our many existing assets. We believe the Corporation
stands among the best performing silver producers with significant base metal
by-product credits in Mexico."
ON BEHALF OF SCORPIO MINING CORPORATION
Parviz Farsangi
President & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North
America)
Email: rkaiser@scorpiomining.com
This news
release includes certain statements that may be deemed "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with
respect to production, objectives, strategy, mine operations, exploration,
future performance and forecasts, our management team, and plans. Generally,
these forward-looking statements can be identified by the forward-looking
terminology such as "plans", "expects" or "does not
expect", "is expected", "budget",
"scheduled", "estimates", "projects",
"intends", "anticipates", or "does not
anticipate", or "believes", or "variations of such words
and phrases or state that certain actions, events or results "may",
"can", "could", "would", "might", or
"will" be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Scorpio Mining Corporation to be
materially different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to the exploration and
development and operation of the Nuestra Se�ora and La Verde projects, risks related to
international operations, construction delays and cost overruns, equipment
breakdowns, the actual results of current exploration, development and
construction activities, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined, future prices of silver,
zinc, copper, lead and gold, risks relating to completing acquisition
transactions as well as those factors discussed in the sections relating to
risk factors of our business filed in Scorpio Mining Corporation's required
securities filings on SEDAR, including its Annual Information Form dated March
30, 2011. Although Scorpio Mining Corporation has attempted to identify
important factors that could cause results to differ materially from those
contained in forward-looking statements, there may be other factors that cause
results to be materially different from those anticipated, described,
estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Scorpio Mining Corporation does
not undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.