United Silver Corp. Signs Term Sheet with Hale Capital, LP to Enter in JV Agreement on Crescent Mine Project
04 June 2012 - 11:00PM
Business Wire
United Silver Corp. (“United Silver Corp.”,the “Company”, or
“USC”;TSX: USC; OTC: USCZF; Frankfurt: UM8) is pleased to
announce that it has signed a term sheet to enter into an agreement
with Hale Capital Partners, LP. Under the terms of the agreement
Hale will receive a 20% joint venture 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. The sale to Hale
Capital will require an initial contribution on closing of
$2,400,000 to USC after transaction expenses, which funding USC
will use to bring the Crescent Mine into commercial production. USC
will remain the manager of the Crescent Silver Mine Joint Venture
and remain its 80% owner and under this new agreement will have the
right to repurchase half of Hale’s 20% interest once certain
conditions are met.
The parties have agreed to use commercially reasonable efforts
to sign the joint venture agreement by June 10, 2012. Other
specific terms of the joint venture will be disclosed in the joint
venture agreement which will be publicly filed on SEDAR upon its
execution. There are conditions precedent to the joint venture
agreement’s completion.
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, on
closing, 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.”
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
www.unitedsilvercorp.com
ON BEHALF OF UNITED SILVER CORP.
"Graham Clark"
Chairman and CEO
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
expect to enter into a joint venture by June 10, 2012, that we will
get into commercial production in 2013 and that we will have
sufficient funding 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 inability
to agree on definitive joint venture documents, 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 TSX Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
news release.
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