Aurcana Silver Provides Corporate Update
July 11 2022 - 7:00PM
AURCANA SILVER CORPORATION (“
Aurcana” or the
“
Company”) (TSXV: AUN) provides the following
update:
As first announced in the press release dated
March 21, 2022, and further to the Company’s press releases dated
April 11, 2022 and May 19, 2022, May 31, 2022, June 3, 2022, June
20, 2022, June 24, 2022 and June 30, 2022 certain indirect, wholly
owned subsidiaries of Mercuria Energy Group
(“Mercuria”) entered into certain standstill and
restructuring agreements with Aurcana with effect as of March 8,
2022, which agreements included the grant to Aurcana of a waiver of
all current events of default and a standstill agreement (a
“Waiver and Standstill) under the Company’s
five-year, $28 million term loan (and an associated hedging
package). The Revenue-Virginius Mine (the “RV
Mine”) owned and maintained by Ouray Silver Mine Inc., a
subsidiary of the Company is subject to a mortgage and security
agreement in favor of Mercuria to secure amounts due Mercuria with
respect to the term loan noted above. On July 7, 2022, the District
Court for Ouray County, Colorado appointed Alliance Management,
Inc. as Receiver for the RV Mine. The Receiver now has control and
custody of the RV Mine and the appointment has stayed all civil
legal proceedings against Ouray Silver Mine Inc. and the RV Mine,
including all arbitration proceedings and foreclosure actions. As
previously noted, the Company and Mercuria engaged in an extensive
process to restructure the debt, including by way of financial and
strategic alternative transactions, but was unable to do so.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA SILVER
CORPORATION
“Kevin Drover”President & CEO
For further information, visit the website at www.aurcana.com or
contact:
Aurcana Silver Corporation2751 Graham StreetVictoria, BC V8T
3Z1Phone: (604) 331-9333
FORWARD LOOKING STATEMENTS AND CAUTIONARY
NOTES
This press release contains forward looking
statements within the meaning of applicable securities laws. The
use of any of the words “anticipate”, “plan”, “continue”, “expect”,
“estimate”, “objective”, “may”, “will”, “project”, “should”,
“predict”, “potential” and similar expressions are intended to
identify forward looking statements. In particular, this press
release contains forward looking statements concerning, without
limitation, statements relating to the enforcement action
undertaken by Mercuria (and including statements with respect to
the timing of all such matters). Although the Company believes that
the expectations and assumptions on which the forward looking
statements are based are reasonable, undue reliance should not be
placed on the forward looking statements because the Company cannot
give any assurance that they will prove correct. Since forward
looking statements address future events and conditions, they
involve inherent assumptions, risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of assumptions, factors and risks. These
assumptions and risks include, but are not limited to, assumptions
and risks associated with the receipt of regulatory or shareholder
approvals, and risks related to the state of financial markets or
future metals prices.
Management has provided the above summary of
risks and assumptions related to forward looking statements in this
press release in order to provide readers with a more comprehensive
perspective on the Company’s future operations. The Company’s
actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive from them. These forward looking statements are
made as of the date of this press release, and, other than as
required by applicable securities laws, the Company disclaims any
intent or obligation to update publicly any forward looking
statements, whether as a result of new information, future events
or results or otherwise.
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.
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