Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

June 18, 2009 10:28 ET

Silvermet Inc. and Cooper Island Enter Into Definitive Agreement

TORONTO, ONTARIO--(Marketwire - June 18, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to announce that it has entered into a definitive agreement regarding the previously announced revised financing arrangement with Cooper Island Investments, LLC ("Cooper Island"). Under the terms of the definitive share subscription and purchase agreement, Cooper Island will exchange its US$2,000,000 loan for a 25% equity interest in Silvermet's Turkish operations. In addition, the common share purchase warrants of Silvermet that Cooper Island received in connection with the loan will be cancelled. The closing of the revised financing arrangement is expected to occur on or about June 26, 2009. At the closing of the revised financing arrangement, Silvermet will issue 367,000 common shares to Cooper Island at a price of $0.1454 per share to satisfy accrued interest on the US$2,000,000 loan. The issuance of the common shares is subject to TSXV approval.

At any time prior to March 31, 2010, Silvermet can require Cooper Island to make additional equity investments in its Turkish operations in US$500,000 tranches up to an aggregate of US$2,000,000 and for each US$500,000 invested Cooper Island will receive an additional 6.25% equity interest in Silvermet's Turkish operations. If Silvermet requests investment of an additional US$2,000,000, Cooper Island will hold a 50% equity interest in Silvermet's Turkish operations.

A copy of the definitive share subscription and purchase agreement will be available under the Company's profile at www.sedar.com.

Silvermet wishes to advise that the press release issued by the company on May 1, 2009 incorrectly stated the number of additional units sold under the private placement as 16,950,000 units. The actual number of additional units sold under the private placement was 16,850,000 units for additional proceeds of $842,500 and for total private placement proceeds of $1,542,500.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Contact Information

  • Silvermet Inc.
    Stephen G. Roman
    Chairman & CEO
    (416) 203-8336
    (416) 368-5146 (FAX)
    or
    Silvermet Inc.
    Rein A. Lehari
    President & COO
    (416) 203-8336
    www.silvermet.ca