Re: News - Friday, April 23, 2010
Minco Silver Expects to Receive the Repayment of All Investments
Made to Sterling as a Result of its Unsuccessful Bid to Acquire
the Sterling Mining Company
Minco Silver Corporation (the "Company" or "Minco Silver") (TSX: MSV)
announces that the Company was unsuccessful in its bid to acquire 100%
of the shares of Sterling Mining Company ("Sterling") during a
bankruptcy auction held on April 21, 2010. As a result, the Company
expects to receive the repayment of all amounts advanced and incurred
on the Sterling matter, with interest, in the aggregate amount of
approximately US$11.76 million, secured by all assets of Sterling.
Minco Silver will also seek to obtain the termination fee, or "break
fee", in the amount of US$2.75 million pursuant to the "Amended and
Restated Letter Agreement" entered into between Sterling and Minco
Silver on July 30, 2008. The receipts of the funds are expected to take
place on May 14, 2010, the closing date for the acquisition by the
"We are pleased to see that the proceeding is coming to a conclusion.
With the funding by the Company pre and post bankruptcy of Sterling
over the past two years, we ensured the well-being and upkeep of the
historical and legendary Sunshine Mine and protected the assets of
Sterling for all the creditors. We are pleased to see that the Sunshine
Mine will be opening a new chapter going forward and wish them the best
in their future endeavors," commented Dr. Ken Cai, Chairman & CEO of
Minco Silver. "With over C$21 million working capital after the
repayment from Sterling, Minco Silver will continue to focus on
bringing its flagship Fuwan Silver Project into production while
continuing to seek valuable global mining opportunities."
The Company is also pleased to announce that it has closed the second
tranche of its non-brokered private placement (the "Offering") totaling
327,500 units at a price of C$1.71 per unit for gross proceeds of
C$560,025. Each unit consists of one (1) common share in the capital
of the Company and one-half of one common share purchase warrant
("Warrant"). Each Warrant will entitle the holder to purchase one
common share in the capital of Minco Silver at an exercise price of
C$2.15 for a period of twelve (12) months from the closing of the
The Company will pay a 5% finders' fee in connection with the Offering
subject to the Toronto Stock Exchange approval. The proceeds of the
Offering will be used for general corporate purposes.
About Minco Silver
Minco Silver Corporation (TSX: MSV) is a TSX listed company focusing on
the acquisition and development of silver dominant projects. The
Company owns 90% interest in the world class Fuwan Silver Deposit,
situated along the northeast margin of the highly prospective Fuwan
Silver Belt. For more information on Minco Silver, please visit the
website at www.mincosilver.ca or contact Ute Koessler at 1-888-288-8288
or (604) 688-8002 firstname.lastname@example.org.
ON BEHALF OF THE BOARD
"Dr. Ken Z. Cai"
Chairman & CEO
The Toronto Stock Exchange does not accept responsibility for the
accuracy of this news release. Certain terms or statements made that
are not historical facts, such as anticipated advancement of mineral
properties or programs, productions, sales of assets, exploration plans
or results, costs, prices, performance are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995, and involve a number of risks and uncertainties that could cause
actual results to differ materially from those projected, anticipated,
expected or implied. These risks and uncertainties include, but are
not limited to; metals price volatility, volatility of metals
production, project development risks and ability to raise financing.
The Company undertakes no obligation and has no intention of updating
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Copyright (c) 2010 MINCO SILVER CORPORATION (MNV) All rights reserved.
For more information visit our website at http://www.mincosilver.ca/
or send mailto:email@example.com