United Silver Corp. Announces the Court-Appointment of a Receiver
January 09 2014 - 11:44PM
Marketwired
United Silver Corp. Announces the Court-Appointment of a Receiver
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 9, 2014) -
United Silver Corp. (TSX:USC)(OTCQX:USCZF)(FRANKFURT:UM8) (the
"Company" or "USC") announces that pursuant to an order of the
Ontario Superior Court of Justice (Commercial List) dated January
9, 2014, Duff & Phelps Canada Restructuring Inc. was appointed
as receiver and manager ("Receiver") of the property, assets and
undertaking of USC and the Receiver has been advised that the
directors of USC have resigned. The Receiver was appointed pursuant
to an application brought by USC's secured creditor, HUSC, LLC
("HUSC").
The stability and certainty of a Court-supervised receivership
is expected to assist to protect the business and preserve the
value of the assets of USC, including the Crescent Mine, in which
USC has an indirect 80% ownership interest. The Court-supervised
receivership is also expected to provide a mechanism to address the
Company's short term liquidity requirements. HUSC has indicated
that it intends to foreclose on the assets of USC's operating
subsidiaries, which are not subject to the receivership
proceedings, in accordance with security agreements granted
previously by the subsidiaries to HUSC in 2012.
A copy of the Court Order and information related to the
Company's receivership proceedings can be accessed at:
http://www.duffandphelps.com/services/investment_banking/Pages/RestructuringCases.aspx
ABOUT UNITED SILVER CORP.
USC is a vertically integrated Canadian mining company with
operations in Idaho, USA. It has an 80% interest in the Crescent
Silver Mine project in the Silver Valley's prolific Silver Belt -
directly between two of the district's historically largest silver
producing properties, the Sunshine and Bunker Hill mines. USC also
offers a full suite of mining services including contract mining
and providing a complete fabrication shop and service for building
and repairing mining equipment to silver miners in the district.
USC's common shares trade on the Toronto Stock Exchange under the
symbol "USC". For more information about USC, please visit:
www.unitedsilvercorp.com
FORWARD-LOOKING STATEMENTS: This news release contains
forward-looking information which is subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ from those projected in the forward-looking
statements. Forward looking statements in this press release
include that the Court-supervised receivership is expected to
assist to protect the business and preserve the value of the assets
of USC, including the Crescent Mine, that the Court-supervised
receivership is expected to provide a mechanism to address the
Company's short term liquidity requirements, and that HUSC intends
to foreclose on the assets of USC's operating subsidiaries.
These forward-looking statements are based on the opinions and
estimates of the Receiver. They are subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected in the
forward-looking information. Risks that could change or prevent
these statements from coming to fruition include the process and
outcome of the receivership, including the ability to consummate a
sale of the Company and/or its assets; the ability to obtain the
Court's approval with respect to motions in the receivership,
including approval of any proposed sale of the Company and/or its
assets; risks associated with third-party motions to the Court in
connection with the receivership; the potential effects of the
receivership on the Company's liquidity or results of operations;
the Company's ability to maintain contracts that are critical to
its operations, to obtain and maintain normal terms with customers,
suppliers and service providers and to retain key executives,
managers and employees; changes in external market factors; changes
in the Company's business or strategy or an inability to execute
its strategy due to changes in its industry or the economy
generally; changing costs for mining and processing and their
impact on the cut off value established; increased capital costs;
changing forecasts of mine production rates; the timing and content
of upcoming work programs; geological interpretations based on
drilling that may change with more detailed information; potential
process methods and mineral recoveries assumption based on limited
test work; the availability of labour, equipment and markets for
the products produced; market pricing for the products produced;
our possible inability to service our debts and pay liabilities as
they become due; and despite the current expected viability of the
project, conditions changing such that the minerals on our property
cannot be economically mined, or that the required permits to build
and operate the envisaged mine can be obtained. The forward-looking
information contained herein is given as of the date hereof and the
Company and the Receiver assume no responsibility to update or
revise such information to reflect new events or circumstances,
except as required by law.
David SieradzkiDuff & Phelps Canada Restructuring Inc.(416)
932-6030(647) 497-9470David.Sieradzki@duffandphelps.com