Silvermex and Genco
Announce Closing of
Business Combination Transaction
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Vancouver, British Columbia: Silvermex
Resources Ltd. ("Silvermex") (TSX-V: SMR)
and Genco Resources Ltd. ("Genco")
(TSX: GGC) are pleased to announce the closing of the combination of their
respective businesses, which was effected by way of a plan of arrangement
(the "Arrangement") in accordance with the Business Corporations Act
(British Columbia). The Arrangement and related transactions completed before
market open on Tuesday, November 16, 2010.
Further to the closing of the transaction, Genco
changed its name to "Silvermex Resources
Inc." ("New Silvermex") and Silvermex, which is now wholly owned subsidiary of New Silvermex, changed its name to "Silver One Mining
Corporation". At the opening of trading on the TSX on Tuesday, November
16, 2010, the common shares of New Silvermex will
begin trading under the new name, new stock symbol and new CUSIP number as
follows:
New Name:
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Silvermex Resources Inc.
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New Stock Symbol:
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SLX
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New CUSIP:
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828426 10 6
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The common shares of Silvermex were delisted from
the TSX Venture Exchange effective at the close of markets on Monday,
November 15, 2010 and were exchanged into common shares of New Silvermex.
The management team and board of directors of New Silvermex
following the completion of the Arrangement are as follows:
- Arthur
Brown, P.Eng, Director -
Mr. Brown is the past Chairman and CEO of Hecla Mining Company (NYSE:
HL) ("Hecla"), headquartered in Coeur d'Alene, Idaho. During
Mr. Brown's 40 year tenure at Hecla he held many executive positions
with the company. He became President in 1986 and was named Chairman and
Chief Executive Officer in 1987. Mr. Brown played a vital role in the
evolution of Hecla into one of the world's
largest and most successful mining companies. Mr. Brown retired from
Hecla in 2006 and joined Silvermex as Chairman
in 2009.
- Michael
H. Callahan, President and Director - Mr. Callahan was with
Hecla from 1989 to 2009. During this 20 year period he held a variety of
positions including: Director, President of Minera
Hecla Venezolana, a subsidiary of Hecla Mining
Co. and Vice President of Corporate Development. Mr. Callahan played a
key role in the acquisition, development and production growth of some
of Hecla's most successful mines.
- Duane
A. Nelson, CEO and Director - Mr. Nelson has been a
director and officer of Silvermex since
February 2006. He has over 25 years of private and public sector
experience with a focus on early-stage projects.
- James
R. Anderson, BSB, LLC, Director - Mr. Anderson is the
current CEO and largest shareholder of Genco.
He is a successful businessman with wide-ranging interests in oil &
gas production, as well as real estate development and rentals. He is
the founder, sole shareholder and President of Tennessee Eastern Gas
& Oil Co. Mr. Anderson holds a Bachelor of Science in Business
degree and a Juris Doctor degree in Law from
the University of Minnesota.
- Joseph
J. Ovsenek, P.Eng,
L.L.B, Director - Mr. Ovsenek is the Senior
Vice President of Silver Standard Resources Inc. (NASDAQ:SSRI)
("Silver Standard") Mr. Ovsenek
holds a Bachelor of Law degree from the University of Toronto. He is a
registered professional engineer, and holds a Bachelor of Applied
Science degree from the University of British Columbia. Mr. Ovsenek played a key role in building Silver
Standard into one of the largest primary silver companies in the world.
- Kenneth
C. McNaughton, M.A.Sc., P.Eng, Director - Mr. McNaughton is the Senior Vice
President, Exploration for Silver Standard since 1991. Mr. McNaughton
holds a Bachelor of Applied Science degree and a Master of Applied
Science degree in geological engineering from the University of Windsor.
He has been with Silver Standard since 1991 and played a vital role in
the development of Silver Standard's extensive resource base, creating
the largest in-ground silver resource of any publicly-traded primary
silver company.
- Robert
J. Fraser, M.Sc., P.Geo, Vice
President, Exploration - Mr. Fraser is the past Exploration Manager for
Hecla in Canada and Venezuela. He graduated with a Hon's B.Sc. in
Geology and a M.Sc. in Mineral Exploration from Queen's University at
Kingston and has over 35 years experience. Prior to his senior position
with Hecla Mr. Fraser was with Noranda for
over 25 years.
- Hallein
Darby, CA, CFO and Corporate Secretary - Ms. Darby
has been Silvermex's Senior VP Finance since
November 2008 initially as Senior VP Finance and is currently CFO. She
was previously the Senior VP Finance for Timmins Gold Corp. Ms. Darby
served as a Senior Securities Analyst with the British Columbia
Securities Commission from 1996 to 2006.
Further details regarding the business combination and the Arrangement
are set out in Silvermex's Notice of Annual and
Special Meeting and Management Information Circular dated October 6, 2010 and
Genco's Notice of Special Meeting and Management
Information Circular dated October 8, 2010, which are available at www.sedar.com.
About New Silvermex
New Silvermex is a publicly traded mining company
focused on developing its core asset, the producing La Guitarra
silver-gold property located in the Temascaltepec
Mining District of Mexico. La Guitarra Mine
presently consists of two underground operation centres
and a flotation mill with a proven capacity of 320 tonnes
per day. New Silvermex is evaluating options for
the expansion of existing mining operations at La Guitarra
Mine and advancing the recently consolidated Rosario/San Marcial
Mining Camp in south eastern Sinaloa, Mexico. The Rosario/San Marcial mining concession consists of two past producing
mines and numerous known high-grade deposits. The project has significant
resources and historic reserves with extensive production related
infrastructure in place. New Silvermex is led by a
highly experienced and successful team, comprised of top executives from
leading corporations in the silver mining sector.
For further information, contact:
Duane Nelson
Director, Chief Executive Officer
Silvermex Resources Inc.
Vancouver, BC, Canada
Tel: 604-512-8118
duane@silvermexresources.com
The Toronto Stock
Exchange has not reviewed the contents of this release and does not accept
responsibility for the accuracy of the contents of this release.
Except for the statements of historical fact contained herein, the
information presented in this News Release constitutes "forward-looking
statements" or "forward-looking information" within the
meaning of Canadian securities legislation (together referred to as
"forward-looking statements"). The forward-looking statements are
subject to risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied by such
forward-looking statements, including any delays in the receipt of consents
or approvals. Although Silvermex, Genco and New Silvermex have
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be 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 contained in this News Release and in any document
referred to in this News Release.
Forward-looking statements are made based on management's beliefs, estimates
and opinions on the date the statements are made and neither Silvermex, Genco nor New Silvermex undertakes any obligation to update
forward-looking statements if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable law.
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