U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

November 09, 2007 13:21 ET

U.S. Silver Corporation to Raise $20 Million Through Bought-Deal Offering

TORONTO, ONTARIO--(Marketwire - Nov. 7, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

U.S. Silver Corporation (TSX VENTURE:USA) today announced that it has entered into an agreement with Research Capital Corporation and Cormark Securities Inc. as underwriters (the "Underwriters"), whereby the Underwriters will purchase, on a bought-deal private placement basis, 20,000,000 units (the "Units") of U.S. Silver at a price of $1.00 per Unit (the "Transaction"). Each Unit shall consist one common share (the "Common Shares") and one-half of one common share purchase warrant (the "Warrants"), each whole Warrant entitling the holder thereof to purchase one Common Share at a strike price of $1.25 for a period of 24 months following the closing (the "Closing") of the Offering. The gross proceeds of the offering will be $20,000,000. The Underwriters shall have the option (the "Underwriter's Option") to increase the size of the Offering by up to $5,000,000 in Units by giving written notice of the exercise of the Underwriter's Option to the Company at any time up to 24 hours before Closing. The Units will be offered by way of private placement exemptions from prospectus requirements in such provinces of Canada as the Underwriter may designate.

The Transaction is scheduled to close on or about December 3, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange ("TSX-V").

In consideration for their services, the Underwriters will receive a cash commission of 7% and broker warrants of 7% of the gross proceeds of the Transaction.

The proceeds received by the Company from the sale of the Transaction will be used to fund the continued exploration and development of the Company's properties and working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT U.S. SILVER CORPORATION

U.S. Silver owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines. in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in US history. Total silver production from U.S. Silver's mining complex has exceeded 210 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 its production from existing operations as well as exploring its extensive Silver Valley holdings.

Cautions Regarding Forward-Looking Statements

Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of U.S. Silver as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to risks, uncertainties and other factors that are beyond the control of U.S. Silver, risks associated with the mining industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Assumptions relating to certain forward-looking information contained in this press release are set out herein. Although U.S. Silver believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of U.S. Silver contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

Contact Information

  • U.S. Silver Corporation
    Bruce Reid
    Chief Executive Officer
    (647) 500-4495
    or
    Tydewell Consulting
    Vance Loeber
    Investor Relations
    (604) 805 3530