Re: Press Releases - Friday, April 17, 2009
ARIAN SILVER UPDATE
- Arian closes Grafton share exchange transaction
- San Jose Project Update
LONDON, UNITED KINGDOM--(Marketwire - April 17, 2009) -
Grafton share exchange transaction
Arian Silver Corporation ("Arian" or the "Company")(TSX
VENTURE:AGQ)(AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A) announces that it has
closed the final stage of a two-part share exchange transaction with
Grafton Resource Investments Ltd ("Grafton") (see Arian's press
releases dated 26 February and 27 March 2009).
Arian has issued to Grafton an additional 82,993,679 common shares at a
price per common share of Cdn$0.055, for a total value of approximately
Cdn$4,564,653, and Grafton has issued to Arian 102,269 ordinary shares
of equivalent value determined by reference to the net asset value of
US$36.93 per Grafton ordinary share calculated as at the close of
business on 31 March 2009.
Application has been made for the additional 82,993,679 Arian common
shares to be admitted to trading on London's AIM on 23 April 2009.
As a result of this transaction Grafton's interest in Arian's
outstanding common shares has increased from 14.9% to approximately
42.2% (109,090,909 Arian common shares).
It is intended that the Grafton shares that Arian has received will be
disposed of to third parties to raise cash principally for Arian's San
Jose Project as well as for general working capital. Grafton has agreed
to facilitate and promote this fundraising process. The principals of
Grafton and its associates have experience in providing funding for
junior mining and exploration companies using this particular type of
share exchange and disposal mechanism.
The Company's capital now comprises 258,142,878 common shares of no par
value each with voting rights.
San Jose Project Update
As previously announced, an in-house scoping study at the Company's San
Jose Project has evaluated the economics for contract mining and custom
milling of seven near surface resource blocks that have been identified
as having potential for near term contract mining. These blocks are
both remnant and adjacent stoping blocks within the existing workings
of the former producing San Jose Mine. The study was designed to
identify key requirements for the rehabilitation of underground access,
new development, the provision of mine services to the potential
exploitation sites, as well as addressing estimated capital and
operating costs. Initial studies indicated support for a contract
mining operation of up to 500 tonnes per day.
The results of the in-house study are sufficiently robust to warrant an
independent study. Arian has recently commissioned ACA Howe
International Limited to carry out a Canadian National Instrument
43-101 compliant independent study.
The penultimate option payment of US$250,000 (ex IVA) in respect of San
Jose was paid during March 2009. The Company has since renegotiated the
terms of the original December 2006 option agreement, such that Arian's
interest has been converted to an ownership interest in the San Jose
Project. Subject to completion of legal and registration formalities
Arian will own a 66.67% controlling interest in the San Jose Project
mineral concessions with the right to take 100% ownership on payment of
the final instalment of US$500,000 (ex IVA) which is due in December
2009. Under the original terms of the option agreement Arian would only
obtain an ownership interest in the San Jose Project mineral
concessions on completion of all option payments and would have
forfeited all rights in the event of failure to pay any instalment.
All relevant mining permits are now in place at San Jose except for the
blasting licence which Arian has applied for and is being progressed
with the relevant Mexican authorities.
Arian continues to dewater the deeper levels, below 150 metres from
surface, of the San Jose mine workings after the Company purchased a
new and more efficient submersible water pump during the third quarter
of 2008. The 120 HP pump, currently pumping non-stop at a rate of 30
litres per second, is expected to dewater the entire remaining flooded
area over the next two months. Once dewatering is complete and the
accessibility considered safe to enter, further channel sampling will
take place of these deeper levels. By arrangement with the local
community the pumped water is being used for irrigating the nearby
Arian is now planning on submitting its stockpiled drill and channel
samples for assay. The submission of these samples had been put on hold
given the cost of analysis and pending raising additional finance.
About the Company
Arian Silver Corporation is a silver exploration and development
company listed on London's AIM and "PLUS", on Toronto's TSX Venture
Exchange and on the Frankfurt Stock Exchange. Arian Silver is active in
Mexico, the world's second largest silver producing country. The
Company's main projects are the Calicanto and San Jose projects in
Zacatecas State and the Tepal project in Michoacan State. Part of Arian
Silver's forward-looking strategy lies in the envisaged use of large
scale mechanized mining techniques over wider mineralized structures,
which reduces the overall unit operating cost of metals, and to build
up NI 43-101 compliant resources.
Further information can be found by visiting Arian's website:
www.ariansilver.com or the Company's publicly available records at
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained in this release.
This press release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects
or anticipates will or may occur in the future (including, without
limitation, completion of the legal and registration formalities
related to the acquisition of a controlling interest in the San Jose
Project referred to in this press release) are forward-looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of
the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things, failure to
obtain required regulatory and shareholder approvals. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact
Arian Silver Corporation
+44 (0)20 7963 8670
Arian Silver Corporation
CFO & Corporate Secretary
+44 (0)20 7963 8670
Bishopsgate Communications Limited
+44 (0)20 7562 3350
Vicarage Capital Limited
+44 (0)20 7060 1303
Grant Thornton UK LLP
+44 (0)20 7385 5100
CHF Investor Relations
(416) 868-1079 Ext. 233
Copyright (c) 2009 ARIAN SILVER CORPORATION (AGQ) All rights reserved.
For more information visit our website at http://www.ariansilver.com/
or send mailto:firstname.lastname@example.org
Message sent on Fri Apr 17, 2009 at 6:56:28 AM Pacific Time