Friday, August 21, 2009

Sterling Mining saga continued: Minco Silver Announces Turnover of Sunshine Mine, MSV.v, SNS.v, HUI, XAU, SSRI, SLW, EPZ.v, KTN.v, ASM.v

" 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."

We have an important market development yesterday: bankrupt Sterling Mining is trading above "solvent" SNS Silver SNS.v The number of crooks involved per Oz of silver resources must be the highest in the industry, but let the judge make his way. We are positively surprised that apparent attempt to defraud Sterling Mining creditors and shareholders was so effectively stopped and now there is a chance, with Minco Silver MSV.v standing by its commitment, for Sunshine mine to shine again. We still see a remote opportunity of reincarnation of Sterling Mining for its shareholders in the form of out of court arrangements with debentures issued to creditors and Minco Silver taking Sterling Mining effectively over as a subsidiary in a share exchange. By the SNS Silver price indication our take is that not a lot of people would like to be in the boat with fast guns any more.

"The best defence is attack. Is it guys from SNS Silver caught with a double deck are pressing charges or Sunshine Precious Metals, Inc., "owner of the fabled Sunshine silver mine in northern Idaho" is trying to get themselves out of criminal charges to follow - as victims, maybe from both sides? It is a great news in any case! SNS Silver Chicago style play will be apparent to any investigation and last management of Sterling Mining have never really thought about shareholders. Any transparency will benefit the situation with the mine ownership and who and how has defrauded shareholders of Sterling Mining. We are waiting for a civil and criminal actions against all involved parties from Sterling Mining shareholders, who were apparently silent victims so far during Sunshine Mine stealing attempt. As we have mentioned before we have enough business risk in this business to have any scam messing around. It could be a show case for mining property rights, which will confirm or disillusion us about rule of law in Idaho."

Press Release
Source: Minco Silver Corporation
On Thursday August 20, 2009, 9:30 am EDT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 08/20/09) - Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) is pleased to announce the turnover of the Sunshine Mine and wishes to respond to the various news releases and media statements and interviews by SNS Silver Corp. ("SNS") and Sunshine Precious Metals, Inc. ("SPMI") and provide an update on Sterling Mining Company ("Sterling"), its bankruptcy and the status of the Sunshine Mine.
Minco Silver is pleased to announce that on August 14, 2009 the United States Bankruptcy Court district of Idaho (the "Court") held that SPMI's continued occupation of the Sunshine Mine is contrary to the best interest of the Sunshine Mine and ordered the possession of the Sunshine Mine be returned to Sterling. Turnover occurred at 12:00 pm on Wednesday, August 19, 2009.
Minco Silver is please to provide the following update.
On March 3, 2009, shortly after Sterling filed its petition in bankruptcy, the Company in its efforts to support Sterling, assumed a portion of Sterling's financial obligations including but not limited to all insurance costs and obligations under the lease dated June 6, 2003 (the "Sunshine Lease"). Furthermore, Minco Silver extended to Sterling pursuant to the terms of a post petition financing agreement an additional US$1,000,000 line of credit to fund Sterling's expenses and costs associated with the Sunshine Mine (the "Post Petition Financing").
On May 15, 2009, the Court issued an interim order approving the Post Petition Financing and announced the first of two pivotal decisions paving the way for Sterling to regain the Sunshine Mine, ensuring the protection of creditors from investment loss.
On May 20, 2009, the Company announced that the Court issued the first ruling in favor of Sterling which held that the Sunshine Lease was not terminated and granted the right to cure for any defaults as determined by the Court.
On July 14, 2009, SNS abandoned the Sunshine Mine effectively turning over the mine to SPMI raising serious concerns as to the state and condition of the mine due to inadequate maintenance and the impending risk of damage from rising water.
"We are committed to the reorganization of Sterling and looking forward to work with Sterling to care and maintain the Sunshine Mine," commented by Dr. Ken Cai, Chairman and CEO of the Company.
About Minco Silver
Minco Silver Corporation (TSX:MSV - 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. For more information on Minco Silver, please visit the website at;_ylu=X3oDMTE2cDI0bWo3BHBvcwMzBHNlYwNuZXdzQXJ0Qm9keQRzbGsDd3d3bWluY29zaWx2/SIG=10vlc5vuj/**http%3A//
Dr. Ken Z. Cai, Chairman & CEO"
Post a Comment