Wednesday, May 20, 2009

Is stolen Sunshine Mine found and returned back to Sterling Mining?, SRLQE.ob, CDNX, HUI, XAU

Well done Dr Cai and Judge Myer's! Does it mean that honesty is still protected? Will Minco Silver aqcuire Sterling Mining SRLM.ob (before bankruptcy) and its shareholders will get at least something? We do not know, but guys from SNS Silver were held at the table with double Deck with this ruling and all story smells like a robbery attempt if will not be appealed. Chicago style hat tricks are not very common even in Wild West Junior Mining and particularly Al Korelin is not getting well into this picture with his reputation. We hope that situation will be resolved in the nearest future with answers to our questions:

"Everything is getting even more interesting, when Minco Silver has declared:
Minco Silver wishes to clarify and respond to Sterling's February 23, 2009 news release, in order to protect the value of the Sunshine Mine for the creditors and Sterling's shareholders, Minco Silver has offered on several occasions to step in and cure any potential defaults and to maintain the Sunshine Mine Lease in good standing including any applicable lease payments and to maintain a care and maintenance program. This offer by Minco Silver is still in effect.
Why nobody at Sterling used this opportunity

Will shareholders of Sterling Mining bring criminal charges against its management and members of the Board, even for a couple of weeks as in this case according to Judge, in the end? We will monitor the situation. We have enough other risks in this business to encourage any Fast Track to Riches guys in any way:

from Doc. 131, Judge Myer's Decision to approve assumption of the lease:

" 7 The executive and senior management level of the mining companies in the Silver Valley of northern Idaho is evidently a rather small group and the individuals well known to one another. Mining company management is also apparently quite fluid, at least based on the testimony at this hearing, with individuals frequently changing employers and boards changing directors. Certain of these transitions are noted in this Decision.
12 Grundman testified he “resigned” from SPMI immediately prior to joining Sterling’s board in January, 2009. He also resigned from Sterling’s board shortly before the March 3 bankruptcy filing. Grundman joined the SNS Silver board shortly after an SPMI-SNS lease for the Sunshine Mine, Ex. 104, was signed on April 13, 2009.
18 According to the February 17 minutes, Ex. 206, Greenway was a Sterling director. The February 19 minutes, Ex. 207, show Greenway as a “guest” and note he is the president and CEO of SNS Silver Corporation. Those February 19 minutes note Greenway resigned from the Sterling board on February 18 because of potential conflict of interest issues between Sterling and SNS Silver. Id."

It is some kind of a joke, we have seen it before a few times - question for SNS Silver shareholders: was the Sunshine Mine prise to big too miss or it a business as usual for these guys?

"Minco Silver Announces Court Ruling on Sunshine Mine Lease
On Wednesday May 20, 2009, 8:52 am EDT
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 20, 2009 -- Minco Silver Corporation (the "Company" or "Minco Silver") (Toronto:MSV.TO - News) announces that on May 15, 2009 the US Bankruptcy Court, District of Idaho (the "Court") released its Memorandum of Decision on Sterling Mining Company's ("Sterling") motion to assume and cure the lease of the Sunshine Mine of June 6, 2003 (the "Sunshine Lease") between Sterling and Sunshine Precious Metals, Inc. ("SPMI") and a motion to approve a post petition financing proposed by Minco Silver.
The Court ruled in favor of Sterling that the Sunshine Lease was not terminated pre-bankruptcy and granted Sterling the right to assume and cure the Sunshine Lease and reacquire the Sunshine Mine.
The Court approved the Company's proposal to provide Sterling with up to US$1,000,000 secured post petition financing under a credit facility to cure any defaults of the Sunshine Lease as ordered by the Court and to meet administration expenses and expenses associated with the continued care and maintenance of the Sunshine Mine.
Minco Silver's Chairman and CEO, Dr. Ken Cai, commented: "It has been a long road, we are very happy with the Court's decision. The Sunshine Lease is a major and valuable asset of Sterling and is Minco Silver's main security for the US$5 million Loan provided to Sterling. We are committed to protecting our investment in Sterling and our shareholder value."
About Minco Silver
Minco Silver Corporation (Toronto:MSV.TO - News) is a TSX listed company focusing on the acquisition and development of silver dominant projects. The Company owns 90% interest in the world class Fuwan Silver Deposit, situated along the northeast margin of the highly prospective Fuwan Silver Belt.
Dr. Ken Z. Cai, Chairman & CEO
Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. The Company undertakes no obligation and has no intention of updating forward-looking statements."
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