Silverstone closes Lundin silver acquisitionHi everyone,
Silverstone closes Lundin silver acquisition
2007-09-28 19:53 ET - News Release
See News Release (C-SST) Silverstone Resources Corp
Mr. Chris Tomanik of Silverstone reports
SILVERSTONE COMPLETES PURCHASE OF ALL THE SILVER FROM LUNDIN MINING'S NEVES-CORVO AND ALJUSTREL MINES
Silverstone Resources Corp. has closed its deal (reported in Stockwatch on June 6, 2007) with Lundin Mining Corp. to purchase all the silver production from Lundin Mining's Neves-Corvo and Aljustrel mines in Portugal for the life of the mine. Silverstone has purchased the silver for $42.5-million (U.S.) in cash and issued 19,656,250 common shares (representing 19.1 per cent of the outstanding shares) of Silverstone. The Silverstone common shares are subject to a four-month hold period. In addition, Silverstone will make continuing per ounce payments at a price equal to the lesser of $3.90 (U.S.) (subject to a 1-per-cent annual inflationary adjustment after three years and yearly thereafter), and the then prevailing market price per ounce of silver.
In order to finance the $42.5-million (U.S.) cash payment, in addition to $28-million (U.S.) cash on hand, Silverstone has drawn down $25-million (U.S.) of bank debt from Scotia Capital Inc. Scotia Capital Inc. acted as financial adviser to Silverstone with respect to this transaction.
Capstone Mining Corp. has also acquired control and direction over eight million common shares (representing 7.8 per cent of the outstanding shares) of Silverstone. Capstone now has control and direction over a total of 20,464,053 common shares (representing 19.8 per cent of the outstanding shares) of Silverstone. Capstone has special warrants to purchase an additional 2,747,428 common shares of Silverstone. If such warrants were exercised, Capstone would have control and direction over 21.9 per cent of the outstanding shares of Silverstone.
Capstone acquired the shares in connection with the silver purchase transaction between Capstone and Silverstone and has filed an early warning report with Canadian Securities Commissions in respect of the acquisition.
GLTA,
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