United Silver Corp. Finalizes LLC Agreement with Hale Capital on Crescent Mine Project; Sells First Load of Concentrate to Re...
June 28 2012 - 1:45PM
Business Wire
United Silver Corp. ("USC";TSX: USC; OTC: USCZF; Frankfurt:
UM8) is pleased to announce that it has closed the agreement
with Hale Capital Partners (“Hale”) first announced on June 4,
2012. Together, USC and Hale formed the Crescent Mine LLC. Under
the terms of the LLC, Hale made a net Initial Contribution of
$2,400,000 in exchange for a 20% interest in the Crescent Silver
Mine, located in the Coeur D'Alene Silver Belt, Idaho. USC had
recently acquired this same interest in the Crescent Silver Mine
project from Gold Finder Explorations Ltd. USC is the manager and
has an 80% interest in the LLC. At any time after USC has satisfied
its obligation to Hale under the Secured Convertible Note dated
February 1, 2012 (see news release dated February 1, 2012), USC may
acquire one half of Hale’s interest in the LLC for a payment equal
to the Initial Contribution.
Other specific terms of the LLC will be disclosed in the LLC
agreement which will be publicly filed on SEDAR.
USC is also pleased to announce that the New Jersey Mill is in
operation, and it has shipped its first load of concentrate from
its test mining operations to the refinery owned by Formation
Metals. These and future concentrate sales are together expected to
generate the cash necessary to complete development and bring the
Crescent Mine into commercial production.
Graham Clark, CEO of USC said, "We are very pleased with Hale
Capital Partners, LP continued support as they become our joint
venture partner in the Crescent Mine project. This transaction
provides us with adequate funding according to our budget to carry
out our development plans until commercial production makes the
Crescent Mine project self sustaining."
Martin Hale Jr, CEO of Hale Capital Partners, said, “We are
pleased to have the opportunity to expand our relationship with
USC. We focus on providing growth capital to strong managers
developing exceptional properties. We believe USC fits well with
our investment focus.”
ABOUT UNITED SILVER CORP.
USC is a vertically integrated mining company with operations in
Idaho, USA. It has a majority interest in the Crescent Silver Mine
project in Idaho's prolific Silver Belt - directly between two of
the world'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 mine machine repair
and fabrication services 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
ABOUT HALE CAPITAL PARTNERS
Based in New York City, Hale Capital Partners has established
itself as a leading private equity firm focused on strategic
investments in public companies and their subsidiaries. Hale
Capital Partners' team is comprised of seasoned private equity
veterans and entrepreneurs, who bring not only deep domain
expertise but also hands-on operating experience to help build
highly successful companies. Hale Capital Partners' mining
portfolio spans all stages of mine development from exploration to
commercial production.
www.unitedsilvercorp.com
ON BEHALF OF UNITED SILVER CORP.
"Graham Clark"Chairman and CEO
Investor RelationsTel. (855) 238-0202
FORWARD LOOKING STATEMENTS: This press release contains
forward-looking statements, which address future events and
conditions, which are subject to various risks and uncertainties.
Forward looking statements in this press release include that we
will have sufficient funding from sale of ore concentrates to carry
out development plans until our project becomes self sustaining..
The Company's actual results and financial position could differ
materially from those anticipated in such forward-looking
statements as a result of numerous factors, some of which may be
beyond the Company's control. These factors include: our budget
forecasts may be inaccurate, results of development activities may
be more difficult or more expensive than anticipated,
mis-estimation of mineral reserves and resources, fluctuations in
the marketplace for the sale of minerals, the inability to
implement corporate strategies, the inability to obtain sufficient
financing, labor shortages, the inability to keep key employees,
currency fluctuations, general market and industry conditions and
other risks disclosed in the Company's filings with Canadian
Securities Regulators.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be inaccurate and as such, undue reliance should not be
placed on forward-looking statements. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
news release.