U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

July 13, 2009 08:16 ET

U.S. Silver Corporation Enters Into Underwriting Agreement for Public Offering of Units

TORONTO, ONTARIO--(Marketwire - July 13, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Company") is pleased to announce that it has entered into an underwriting agreement for its previously announced $4 million public offering (the "Offering") consisting of 30,770,000 units (the "Units"). The Units will be offered at a price of $0.13 per Unit, with each Unit being comprised of one common share and one-half of a warrant (a "Warrant"). Each whole Warrant will have a term of five years and entitle the holder to purchase one common share at a price of $0.155 per share.

A syndicate led by Cormark Securities Inc., and including Research Capital Corporation and MGI Securities Inc., is acting as Underwriters of the Offering which is anticipated to close on or about July 16, 2009, subject to satisfaction of all terms and conditions of the underwriting agreement.

In connection with the underwriting agreement, the Company has filed a final short form prospectus with the securities commissions in Ontario, Alberta and British Columbia.

The Company has granted to the Underwriters an option, exercisable in whole or in part at the discretion of the Underwriters, for a period of 30 days from the closing date of the Offering, to purchase up to 4,615,500 Units at a price of $0.13 per Unit or, alternatively 2,307,750 Warrants at a price of $0.035 per Warrant (or a combination of Units and Warrants not exceeding 4,615,500 Common Shares and 2,307,750 Warrants), to cover over-allotments, if any, and for market stabilization purposes.

Further details of the Offering are set out in the final short form prospectus of the Company dated July 10, 2009 available on SEDAR.com or from one of the members of the underwriting syndicate.

The Units will be offered by way of a short form prospectus in Ontario, Alberta and British Columbia and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly-owned subsidiaries, owns and operates the Galena, and owns the Coeur, Caladay and Dayrock, silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 216 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur D'Alene Mining District.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks, assumptions and uncertainties that are difficult to predict, including the risk that the net proceeds may not be sufficient for the purposes stated in the prospectus and the risk that regulatory approvals may not be obtained within the timeframe contemplated. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

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

  • U.S. Silver Corporation
    Tom Parker
    President and CEO
    (208) 752-0400