South American Silver Files Third
Quarter 2012
Financial
Statements and MD&A
-South American Silver Corp. (TSX: SAC, US OTC: SOHAF) reports the release of its unaudited
condensed interim consolidated financial statements for the three and nine
months ended September 30, 2012 and the related management's discussion and
analysis of financial position and results of operations
("MD&A"). In this press release, all
amounts are expressed in U.S. dollars.
As at September 30, 2012, the Company had working
capital of $29.0 million, including cash and cash equivalents of $29.5 million.
With these funds in place, the Company is in a strong financial position to
expand activities at its Escalones project, to pursue
full compensation based on the fair market value of the Malku
Khota project, and to pursue other corporate
initiatives.
In Chile, the Company
has commenced a drilling program at Escalones in the
November-April window. The planned program will aim to confirm and expand the
resource in the categories reported previously: oxide/sulphide,
skarn and porphyry and will provide material for further
metallurgical testing. The results from this drilling will be combined with
earlier results and it is intended that an updated resource will be developed
and reported in compliance with NI 43-101 in mid-2013.
In Bolivia, the Company
is vigorously pursuing all options to maximize the value from the Malku Khota project and intends
to pursue full compensation based on the fair market value of the project
through international arbitration in the event that settlement cannot be
reached with the government of Bolivia within the six-month cooling-off period
which ends on April 23, 2013.
The Company has several
essential components that position it well for the future including experienced
leadership, a strong balance sheet, and proprietary acid chloride leach
technology that gives it a competitive advantage for developing bulk mineable
deposits that contain both precious and base metals as
well as indium and gallium. The Company has the opportunity in the period ahead
to also look at other projects in a market that is very challenging for many
companies to raise capital.
Copies of the unaudited financial statements and
related MD&A can be found on SEDAR at www.sedar.com and on the Company's
website at www.soamsilver.com.
About
South American Silver Corp.
South American Silver Corp. is a growth focused
mineral exploration company creating value through the exploration and
development of the large scale Escalones copper-gold
project in Chile and the realization of value from the Malku
Khota project in Bolivia. The Company's approach to
business combines the team's track record of discovery and advancement of large
projects, key operational and process expertise, and a focus on community
relations and sustainable development. Management has extensive experience in
the global exploration and mining industry. The Company's shares are listed on
the Toronto Stock Exchange under the symbol "SAC" and on the US OTC
market as "SOHAF". Additional information related to South American
Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
South American Silver
Corp. Contact:
Robert Gill
Investor Relations
South American Silver
Corp.