Aurcana Silver Corp V.AUN.H

Aurcana Closes $50 million Loan Facility

[basserdan]

Aurcana Closes $50 million Loan Facility

Vancouver, BC, September 19, 2013 - Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN; OTCQX: AUNFF) is pleased to announce that it has executed definitive agreements with MF2 Investment Holding Company (Cayman) Limited, part of Orion Mine Finance Fund I ("Orion Mine Finance"), for a loan facility in the principal amount of US$50,000,000 (the "Loan") and an Offtake Agreement (the "Offtake Agreement") for silver and gold (the "Material") produced at the Company's Shafter mine. A total of approximately US$13 million from the Loan proceeds will be used by the Company to complete the construction and upgrade work for Shafter mine and the balance of the Loan will be used to repay certain indebtedness and for otherwise advancing the La Negra and Shafter mines.

Mr. Lenic Rodriguez, the Company's President & CEO states: "The closing of the US$50 million non-dilutive Loan facility is an important achievement for Aurcana and provides the Company with a significant cash infusion during challenging market conditions. The Loan will be sufficient to complete the Shafter ramp up and increase efficiencies at La Negra and provides flexibility in pursuing our growth objectives. This transaction demonstrates the confidence shown in Aurcana's mines, management and leadership by one of the leading mining sector focused investment funds. We look forward to a long term relationship with Orion Mine Finance while we continue to work on our goal to become an emerging senior silver producer."

Loan Highlights:

* Loan provides non-dilutive financing facility to the Company.
* Interest payable is set at 3 month US$ LIBOR (subject to a 1% minimum) plus 5.5%.
* Term of Loan is 39 months after closing with no principal payable until four months after closing. Early repayment of the Loan may occur at any time without charges.
* Aurcana has agreed to sell silver and gold produced from the Shafter mine to Orion Mine Finance at market prices for either a 6 year period, or until Aurcana has sold a minimum of 27 million oz of silver, whichever is later, subject to an early buy-out provision.
* The Loan is subject to a 1% origination fee.
* The Loan will be unsecured at the time of advancement, but may become secured in certain circumstances.

The Loan facility strengthens Aurcana's balance sheet and provides significant financial flexibility to complete its corporate growth objectives.

In connection with the Loan, the Company will pay to Pashleth Investment Ltd., an arm's length party to the Company, a finder's fee of US$250,000.

About Aurcana Corporation

Aurcana Corporation is a primary silver producing company with two mines: the La Negra Mine in Mexico and the Shafter Mine in Texas, US. The Company is in a position to grow organically from its existing mines in its pursuit to become an emerging senior silver producer. Aurcana continues to focus on its future growth. For additional information about Aurcana, please visit https://www.aurcana.com

About Orion Mine Finance

Orion Mine Finance provides flexible financing solutions to mining companies in the precious and base metals sectors for the purposes of developing, constructing, expanding or acquiring mining projects. Orion Mine Finance has approximately $1.14 billion under management, dedicated exclusively to the mine finance business. Orion Mine Finance Fund I, formerly known as the RK Mine Finance Fund II LP, was launched in 2012 and is one of the world's leading mining sector-focused investment funds.

Orion Mine Finance operates across the global metals industry with offices in New York, Denver, Sydney and Bermuda. Investors in Orion Mine Finance include college endowments, foundations, family offices, pensions and other institutional investors. For additional information about Orion Mine Finance, please visit https://www.orionminefinance.com

Corporate

The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcqx.com and https://www.otcmarkets.com.

"Lenic Rodriguez"
Lenic Rodriguez, President & CEO
AURCANA CORPORATION


For further information contact:

Lenic Rodriguez, President & CEO
Catalin Chiloflischi, Corporate Communications Director
Phone: [phone]
Toll Free: [phone]
Fax: [phone]
Email: [e-mail]
https://www.aurcana.com

https://finance.yahoo.com/news/aurcana-closes-50-million-loan-233304574.html

Dan