United Silver Corporation Announces Extraordinary General Meeting
23 October 2012 - 10:45PM
Business Wire
United Silver Corp. (“United Silver Corp.”, the “Company”, or
“USC”: TSX; USC: OTC; USCZF: Frankfurt: UM8) announces that in
furtherance of its reformulation and re-evaluation of its mine plan
announced on August 24, 2012, it has called an extraordinary
shareholder meeting scheduled for October 31, 2012 in Vancouver,
BC. The purpose of the meeting is to approve the Company’s ability
to preserve cash by issuing convertible notes to Hale Capital
Partners (“Hale”) in place of paying cash for our quarterly
interest payments due.
On February 1, 2012, we announced that we had borrowed
$6,300,000 US from Hale under a convertible note (the “Note”) . The
Note is convertible into shares at a conversion price of $0.50 US
per share. Under the Note, interest is payable quarterly in cash
or, at our election, by issuance of additional convertible notes
convertible at a price based on the market price at the time the
interest payment was due. We have already issued two notes in place
of paying cash for interest payments that were due May 1 and August
1, 2012. The next interest payment is due November 1, 2012.
Under policies of the TSX Stock Exchange, any party who has the
right to convert securities, including convertible notes, into 20%
or more of the Company’s outstanding common stock is considered a
“control person”. Shareholder approval is required to issue
securities to any person where such issuance would create a new
control person. By the Company issuing new interest payment
convertible notes to Hale in the future, Hale would be deemed a
control person because if it converted all its notes into shares,
it would hold 20% or more of the Company’s shares.
The Company is pleased with the current progress on the
reformulation and re-evaluation of its mine plan and expects to be
in a position to make announcements in the near future. A part of
our plan will be the continued judicious and prudent use and
preservation of cash, including our ability to issue convertible
notes to Hale for interest payments instead of using limited cash
reserves.
A notice of meeting and information circular has been mailed to
all shareholders and should be received by now. Our board
unanimously urges our shareholders to vote in favour of the items
listed for approval at the meeting by marking your proxies and
sending them to our transfer agent as per the proxy form
instructions, or attending the meeting in person in Vancouver.
We look forward to voting participation of our shareholders with
this important decision.
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.
ON BEHALF OF UNITED SILVER CORP.
"Graham Clark"Chairman and CEO
Investor RelationsTel. (855) 238-0202
The Toronto Stock 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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