U.S. Silver Corporation (TSX: USA, OTCQX: USSIF, Frankfurt: QE2) ("US Silver" or "the Company") announced today an update on matters currently underway at the Company.
U.S. Listing Application
Due to weakness in silver prices and equity markets its previously announced listing on the NYSE Amex has been postponed until market conditions improve and specifically until a sustainable common share trading price above $2.00 can be demonstrated. The recent drop in equity prices for precious metal producers does not reflect the relatively robust pricing in the commodities market and the Company continues to be optimistic that the current silver price levels and Company's resulting strong cash flow generation will be reflected in its share price. The Company will continue to monitor the market environment with a view to commencing trading on the NYSE Amex when it has sustained a common share trading price above $2.00.
"The Company continues to execute on its key strategic priorities for 2012. These include building a high quality workforce, developing the Coeur mine to bring it into production by the end of 2012 and identifying additional asset opportunities," said Mr. Gordon Pridham, Executive Chairman of U.S. Silver. "Mine production continues to generate strong cash flow in accordance with our forecast, as evidenced by our cash bank balances at the end of the first quarter of 2012 of approximately $27 million."
The Company, with the assistance of a prominent global executive search firm, has reviewed and assessed numerous strong candidates, has identified a short list of mining executives and is currently engaged in more detailed discussions with them. US Silver is committed to a patient, thorough and detailed search and will provide an update to the market as soon as the process is complete. In the interim, the Company continues to execute on its operational and strategic plans.
Normal Course Issuer Bid
US Silver has repurchased approximately 320,000 shares to date under the program. Purchases were suspended in the most recent period due to concerns over silver and equity market volatility but as the silver price appears to have stabilized, these purchases are again being made. The Company continues to believe that its common shares are undervalued and with its strong cash position the share buyback program remains a prudent investment that will benefit shareholders as silver equities regain strength. The Company is authorized to purchase a total of 3,092,727 of its common shares, subject to daily limits, under the current NCIB, which expires on February 20, 2013.
The Company continues to invest in its Galena operations and an upgrade to the electrical components of the hoist in the Number 3 shaft at the Galena mine begins this Friday as part of its strategic plan to build asset value at the Galena Mine Complex by creating a safe, modern and efficient operation. The upgrade is expected to take two weeks to complete and during that time hoisting will occur at the Coeur shaft only for the silver-lead ore. Mining will continue at normal rates with the silver-copper ore stockpiled underground. Overall production is not expected to be affected. The Company re-affirms its annual production guidance for 2012 of 2.4 million ounces, subject to quarterly variability due to the nature of the mining operations and the timing of shipments.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive SilverValley holdings in the Coeur d'Alene Mining District.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
U.S. Silver Corporation
Heather Foster, 208-556-1535 ext. 2