Month: February 2016

Americas Silver Corporation is pleased to announce that it has closed the previously announced subordinated credit facility with its two existing lenders and equity holders for a principal amount of U.S. $2.9 million. The New Credit Facility has a 12 month term with interest to accrue from closing at a rate of 10% per annum payable quarterly in cash or shares (at the option of the lenders at the then market price and subject to TSX approval) with the full principal balance due on maturity. The New Credit Facility is subject to an inter-creditor agreement between the Company’s existing lenders and ranks in priority behind the roughly U.S. $6.0M in senior secured notes and equally with the U.S. $1M in junior secured notes. In connection with the New Credit Facility, the Company has issued 30,000,000 common share purchase warrants divided between the lenders with a term of 3 years and an exercise price of $0.10 and adjusted the exercise price of the existing 24,321,111 warrants already held by the lenders in connection with prior financings to $0.10 with all other terms remaining unchanged.

Sierra Metals Inc. is pleased to report a positive outcome in the legal dispute between Polo & Ron Minerals and Dia Bras Exploration Inc., and Dia Bras Mexicana a subsidiary of Sierra Metals, that holds its Bolivar and Cusi properties in Mexico.

Jason Weber, President & CEO of Alianza, commented “We have a diverse project portfolio of base and precious metal projects in excellent jurisdictions. We will continue to add to this portfolio in preparation for a market turn-around, so that we are ready to move quickly as our potential partners are able to fund exploration projects to make new discoveries.”

“The announcement of today’s debt restructuring, along with the decision to lock in our $5.0 million gain on our BAML lead and zinc hedge, and to push out the settlement of the revolving credit line by three years, immediately improves the Company’s working capital position and provides significant financial flexibility to continue pursuing our corporate objectives,” stated Keith Neumeyer, President and CEO. “Our strengthened balance sheet and diverse portfolio of producing silver mines provides us with the opportunity to access funds at a low cost of capital.”

“We were pleased with our operating performance in 2015, meeting our guidance, reducing our costs and raising nearly $1 billion through two streaming transactions to strengthen our balance sheet,” said Don Lindsay, President and CEO. “However, the commodity cycle continues to provide us with a very challenging environment such that our near-term priorities are to keep all of our operations cash flow positive, meet our commitment to Fort Hills with internal sources of funds, evaluate options to further strengthen our liquidity and maintain a strong financial position by ending the year without drawing on our lines of credit.”

Mexico, with a long and rich history of mining, is home to some of the largest mines in the world! It is currently the largest global producer of silver. The country is also one of the world’s top producers of fluorite, bismuth, celestite, sodium sulphate, wollastonite, lead, molybdenum, diatomite, cadmium, graphite, baryte, salt, gypsum, manganese, and zinc.

“In 2015, our operations continued to perform well, which allowed us to do better on both our production and cost guidance for the fourth consecutive year. Despite a volatile gold price environment, we doubled our exploration spending, continued to advance our pipeline of development projects, and reduced our net debt by approximately $190 million,” said Sean Boyd, Agnico Eagle’s Chief Executive Officer. “Over the next three years, we are forecasting stable annual production and costs, which should allow us to continue to invest in our existing mines, maintain funding levels at our key exploration projects, advance our development pipeline in Nunavut at a steady and measured pace and maintain our history of continuous dividend payments to shareholders,” added Mr. Boyd.

“Year-end 2015 reserves reflect the continuing theme of ‘quality over quantity’ of silver and gold ounces and align with our strategy to produce higher-grade, higher-margin ounces to maximize free cash flow across our operations,” said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “We removed the lower-grade material that was not economical at these lower metals prices, primarily from La Preciosa, using silver and gold reserve prices over the next two years that are 18% and 10% lower, respectively, than year-end 2014. Companywide gold reserves increased by over 600,000 ounces at 33% higher grade compared with last year, primarily due to the addition of Independencia Este, Wharf, and higher grade material at Kensington.