Silver Mines Limited
LSE : SVLP

Silver Mines Limited

June 27, 2008 02:00 ET

Admission to PLUS Market

SILVER MINES LIMITED
APPLICATION FOR ADMISSION TO PLUS

The  Directors  of Silver Mines Ltd. ("Silver Mines" or "the Company"), the specialist  Australian
ASX  Listed  Silver  exploration company, are pleased to announce that the entire  ordinary  share
capital  has  been  admitted for trading on the PLUS-quoted Market in parallel to  its  continuing
listing on the ASX.

LISTING DETAILS

SECTOR CLASSIFICATION: Mining
PRINCIPAL  ACTIVITIES:    Exploration for primary silver mineralisation and  associated  base  and
precious metals in Australia
CORPORATE ADVISOR:      Loeb Aron & Company Ltd.

OVERVIEW

The  Company was incorporated on 6th January 2004, in Australia with Australian Company Number 107
452 942, and was listed on the ASX on 19th January 2007.
The  Company's  strategy  is  exploring  for  and developing  primary  silver  mineralisation  and
associated  base  and precious metals in Australia. The Company currently holds eight  exploration
licences in New South Wales and one exploration licence in Tasmania, further details of which  are
available  in  the Admission Document, copies of which can be obtained from Loeb Aron  &  Co  Ltd.
during normal office hours.

Visit the Company's website (www.silverminesltd.com.au) for project information.

The Directors believe that admission to the PLUS-quoted Market will broaden the Company's investor
base,  heighten  awareness  of  the  Company and thus support  the  Company's  medium-term  growth
strategy. PLUS Markets Group plc (PLUS) is the UK's new, independent stock exchange for small  and
mid-cap companies.   It was recently granted  Recognised Investment Exchange (RIE) status  by  the
UK's  Financial  Services  Authority, opening up the market  to  a  wide  pool  of  investors  and
supporting equity fundraising for companies on PLUS.  The PLUS-quoted market is dedicated  to  the
needs  of growing companies seeking access to a public market for the first time, whether to raise
capital or enhance the profile of their business. PLUS-quoted provides a straightforward, credible
and  cost  effective  solution for well managed companies, from the UK or overseas,  on  a  market
designed to provide maximum visibility in the UK equity capital marketplace. Currently, there  are
17 other mining companies quoted on PLUS, and a total of 18 non-UK Companies quoted on PLUS.

CAPITAL STRUCTURE.

The  Company  has  43,497,450 fully paid ordinary shares in issue of which  1,643,750  fully  paid
shares that are restricted to 19 January 2009;

 . In addition there are the following options to subscribe in issues;

11,635,000 exercise price 20c, expiring 30 Nov 2009;
2,185,000 Options restricted to 19th January 2009, exercise price 20 cents expiring 30 Nov 2009
3,500,000 Options restricted to 19th January2009, exercise price 20 cents expiring 30 Nov 2009
2,000,000 Options restricted to 19th January2009, exercise price 20 cents expiring 30 Nov 2009
300,000 Unlisted Options
Full details of all of the Options are set out in the Admission Document

DIRECTORS AND MANAGEMENT

David Henty Sutton,  (Age 65 ) Non-Executive Chairman

David  has many years experience in stock broking and investment banking. Since 2002 he  has  been
Executive  Chairman of Martin Place Securities Pty. Ltd., a boutique investment  firm  holding  an
Australian Financial Services Licence, where his responsibilities include management of  corporate
finance, advisory and share broking facilities within the firm. Martin Place Securities Pty.  Ltd.
provides  services in corporate advisory, stock broking, and investment research, with  particular
emphasis on the resources and energy sectors.

Prior  to  his current role David was a partner and director of several Australian Stock  Exchange
firms including Clarke & Co, McNab Clarke Ltd. and more recently, a director of TA Securities Pty.
Ltd.,  Hudson  Securities Ltd. and Terrain Securities Pty. Ltd. He became a member  of  the  Stock
Exchange of Melbourne and subsequently of the Australian Stock Exchange Limited.

His  past  experience of directorships of public companies includes the Hudson Group of Companies,
Fleet Capital Limited and Waivcom International Ltd., his experience of directorships of companies
in  the  resources sector include, Chairman of Reef Mining Limited, (a listed gold  producer)  and
director of Imperial Corporation Ltd., (a company producing natural gas in the United States).

Charles David Straw (Age 35 ) Chief Executive Officer

Charles  Straw is a geologist and a member of the Australasian Institute of Mining and  Metallurgy
(AUSIMM).  During  the  past 15 years Charles has gained experience in a broad  range  of  natural
resources,  engineering and IT focussed projects including mineral exploration (gold, base  metals
and  diamonds),  environmental assessment and planning, engineering  design,  data  modelling  and
visualisation, information management and mining finance and investment.

David John Straw, (Age 77 ) Non-Executive Director

David Straw is a geologist with extensive experience in all phases of mineral exploration, project
development,  joint  ventures, mine development, production, valuation and  finance,  across  most
commodities including silver, gold, tin, tungsten, base metals, iron ore, mineral sands,  uranium,
asbestos and coal. He has wide experience with companies, governments and individuals; He also has
an  intimate knowledge of all levels of corporate administration. His global experience  includes,
but  is  not limited to, Australia, Canada, USA, Mexico, Africa (South, West and Central),  Europe
and South-East Asia.

David has held a broad range of technical, managerial and advisory positions through his career to
both small and large exploration and mining companies as well as governments.

Selected highlights from his career include; Chief Geologist at Canadian Johns-Manville Co.  Ltd.,
Director of Yerranderie Silver Limited and of Mareeba Mining and Exploration Limited. He also  has
held  various  positions including Vice President Exploration, Vice President Mineral  Development
and  Directors of Inco Australia and Inco Indonesia. He was Deputy Managing Director  of  merchant
bank  Westralian  International, and a director of Robe River Ltd. He has held  various  positions
from  Operations Manager to General Manager Corporate Development of Mount Isa Mines and  Director
of  Various  subsidiaries. At BMI Limited he held various positions including General Manager  and
Director of mining subsidiaries.


Kim Austen Slater , (Age 51 ) Non-Executive Director:
Kim Slater has over 25 years experience in senior executive roles within the banking and financial
services  industry.  Over  this  time he has provided specialist advice  on  structured  products,
hybrids,  fixed  interest, and equity derivative products to the board  and  executives  of  major
public  and  private institutions. He has held positions with County Natwest, Deustche  Bank,  and
Salomon Smith Barney.

Kim  currently  operates an independent boutique advisory practice that specialises  in  providing
strategic  advice and corporate guidance to boards and senior executives of ASX-listed  companies.
His  experience  in  successfully driving development and executing  strategy  combined  with  the
experience and knowledge of owning and operating his own small business, give a useful and  varied
perspective to the strategic aspirations of the Company.

Malcolm Harvey Bird, (Age 65 ) Non Executive Director

Malcolm Bird has over 35 years experience in the stock broking industry with an emphasis on mining
investments.  He  is currently a director of Morning Star Gold NL and has been  on  the  board  of
Central West Gold NL since its incorporation 17 years ago.

DIRECTORS INTERESTS

The Directors of the Company have an interest in 16.6% of the Ordinary shares in issue.


ADDITIONAL INFORMATION

Additional information on the Company and recent drilling results can be found on the ASX  website
(www.asx.com.au)  where  the Company's securities are listed (Ticker  SVL)  and  its  own  website
www.silverminesltd.com.au. The Company's interim accounts to 31st December 2007 are  available  on
the ASX and PLUS websites.

RISK FACTORS


The following risks should be considered carefully by prospective
investors  before  acquiring Ordinary Shares. If any of the following risks  actually  occur,  the
Company's  business,  financial  conditions, results or  future  operations  could  be  materially
affected.  In  such  circumstances, the price of the Ordinary Shares could decline  and  investors
could lose all or part of their investment.
The  information below does not purport to be an exhaustive list or summary of the risks affecting
the Company and are not set out in any particular order of priority. There may be additional risks
of  which  the  Directors are not aware. Investors should consider carefully  these  risks  before
making a decision to invest in the Company.
1. General exploration and development risk
Generally the exploration industry contains an element of risk and there can be no guarantee  that
estimates  of  dimension,  quantities and qualities of resources and  reserves  will  actually  be
available  for  development. With all exploration operations there is uncertainty,  and  therefore
risk  associated with operating parameters and costs resulting from the scaling up  of  extraction
methods tested in pilot conditions. Exploration is speculative in nature.
If  reserves are developed, it can take a number of years from the initial phases of drilling  and
identification  of  resource levels until production is possible, during which time  the  economic
feasibility  of  production may change. Substantial expenditures will  be  required  to  establish
reserves,  to  determine  processes  for extraction and to  construct  extraction  and  processing
facilities.  As  a  result  of  these uncertainties, there can be no  assurance  that  exploration
programmes will result in any new commercial extraction activities being brought into operation.
There  are risks inherent in the development of resources which, by its nature, will involve risks
and  hazards outside the Company's control including geological, geotechnical and seismic factors,
environmental   hazards,  industrial  and  mechanical  accidents,  occupational  health   hazards,
unscheduled  shutdowns  or  other processing problems, technical  failures,  labour  disputes  and
explosions. These risks and hazards could also result in damage to, or destruction of,  production
facilities,  personal  injury, environmental damage, business interruption,  monetary  losses  and
possible legal liability.
As  is  common  with all such operations, there will be uncertainty and therefore risk  associated
with the Company's operating parameters and costs. These can be difficult to predict and are often
affected by factors outside the Company's control.
2. Payment Obligations
Under  the  terms of exploration licences and certain other contractual arrangements to which  the
Company  is  a party or may in the future become a party, the Company is or may become subject  to
payment  and  other obligations, for example the requirement to meet certain work commitments.  In
the  event  that  the Company does not have the funds necessary to meet these  payment  and  other
obligations  the said licences or contracts may be cancelled or withdrawn. Further if  contractual
obligations  are not met, the Company may be liable for damages for breach of contract,  and  this
may result in addition to the dilution or forfeiture of rights and interests held by the Company.
3. Price volatility and exchange rate risks
Metal  prices  have  displayed wide ranges and are affected by numerous  factors  over  which  the
Company  does not have any control. These include world production levels, international  economic
trends,   currency  exchange  fluctuations,  expectations  for  inflation,  speculative  activity,
consumption  patterns  and  global or regional political events. The  aggregate  effect  of  these
factors is impossible to predict.
The  market  for some metals my be relatively illiquid and small purchases or sales of the  metals
can have a material impact on the price, resulting in a higher volatility and distorting the price
away from the fundamental supply-demand balance.
There is also uncertainty as to the possibility of increase in world production both from existing
mines  and  as a result of mines currently closed being reopened in the future if price  increases
make such projects economic.
Consequently as a result of the above factors, price forecasting can be difficult or imprecise.
4. Governmental regulations and processing
The Company's future exploration, development and production activities are likely to be dependent
upon  the  granting of appropriate licences, concessions, leases, permits and regulatory  consents
which  may  be  granted  for a defined time period. These may be subject to  limitations  and  may
provide for withdrawal in certain circumstances. There can be no assurance that when granted  they
will be renewed or, if so on what terms.
Governmental  approvals, licenses, concessions, leases, permits and regulatory  consents  are,  as
practical matter subject to the discretion of the applicable governments or governmental  offices.
The  Company  must  comply  with known standards, existing laws and regulations  that  may  entail
greater or lesser costs and delays depending on the nature of the activity to be permitted and the
interpretation of the laws and regulations implemented by the permitting authority. New  laws  and
regulations,  amendments  to  existing laws and regulations,  or  more  stringent  enforcement  of
existing  laws and regulations could have a material adverse impact upon the Company's operational
and financial results.
5. Development projects
Development  projects  have  no  operating history upon which to base  estimates  of  future  cash
operating  costs.  For development projects, estimates of proven and probable  reserves  and  cash
operating costs are, to a large extent, based upon the interpretation of geological data  obtained
from  drill holes and other sampling techniques and feasibility studies which derive estimates  of
cash  operating costs based upon anticipated tonnage and grades or ore to be mined and  processed,
the  configuration  of  the ore body, expected recovery rates, comparable facility  and  equipment
operating  costs, anticipated climatic conditions and other factors. As a result, it  is  possible
that actual cash operating costs and economic returns may differ from those currently estimated.
6. Limited operating history
The  Company  has no properties producing positive cash flow and its ultimate success will  depend
upon  its  ability to generate cash flow from producing properties in the future. The Company  has
not  earned profits to date and there is no assurance that it will do so in the future. A  portion
of  the Company's activities will be directed to the search for and the development of new mineral
deposit.
Significant  capital  investment  will  be  required to achieve  commercial  production  from  the
Company's  existing projects and from successful exploration efforts. There is no  assurance  that
the Company will be able to raise the required funds to continue these activities.
7. Financing
The  successful  discovery and extraction of precious or base metals may require very  significant
capital  investment.  In  addition, delays in the construction and commissioning  of  any  of  the
Company's  mining  projects  or drilling projects or other technical difficulties  may  result  in
projected  target  dates for related production being delayed and/or further  capital  expenditure
being  required.  In  common with all mining and drilling operations, there  is  uncertainty,  and
therefore  risk, associated with operating parameters and costs resulting from the scaling  up  of
extraction  methods tested in laboratory conditions. The Company's ability to raise further  funds
(which  may  be  sought partially from Shareholders) will depend on the success  of  existing  and
acquired  operations. The Company may not be successful in procuring the requisite funds  and,  if
such funding is unavailable, the Company may be required to reduce the scope of its operations  or
anticipated expansion.
8. Insurance coverage
There  are  significant  exploration  and operating risks  associated  with  mineral  exploration,
including  adverse weather conditions, environmental risks and fire, all of which  can  result  in
injury  to  persons  as  well  as  damage to or destruction of the  extraction  plant,  equipment,
formations  and reserves, production facilities and other property. In addition, the Company  will
be  subject  to liability for environmental risks such as pollution and abuse of the  environment.
Although the Company will exercise due care in the conduct of its business and will maintain  what
it  believes  to be customary insurance coverage for companies engaged in similar operations,  the
Company  is  not fully insured against all risk in its business. The occurrences of a  significant
event  against  which the Group is not fully insured could have a material adverse effect  on  its
operations  and  financial performance. In addition, in the future some or all  of  the  Company's
insurance coverage may become unavailable or prohibitively expensive.
9. Competition
The  mineral  exploration  and mining business is competitive in all of its  phases.  The  Company
competes  with  numerous  other  companies and individuals,  including  competitors  with  greater
financial,  technical and other resources than the Company, in the search for and  acquisition  of
exploration  and  development rights on attractive mineral properties. The  Company's  ability  to
acquire exploration and development rights on properties in the future will depend not only on its
ability  to  develop the properties on which it currently has exploration and development  rights,
but  also  on  its  ability to select and acquire exploration and development rights  on  suitable
properties  for exploration and development. There is no assurance that the Company will  continue
to  be  able to compete successfully with its competitors in acquiring exploration and development
rights on such properties.
10. Reserve and resource estimates
The  Company  has  derived  the  mineral resource figures p from the  calculations  and  estimates
reported  in the Competent Person's Report set out in Part IV of the Admission Document.  Resource
figures are estimates and there can be no assurances that they will be recovered or that they  can
be  brought into profitable production. Resource estimates may require revisions based  on  actual
production  experience. Furthermore, a decline in the price of silver or  other  metals  that  the
Company  may  discover could render mineral resource containing relatively lower grades  of  these
minerals uneconomic to recover and may ultimately result in a restatement of resources.
The  estimates  of potential resources include a proportion that is undeveloped.  These  resources
require  further capital expenditure in order to bring them into production. No guarantee  can  be
given  as  to the success of drilling programmes in which the company has interests. In  addition,
drilling,  development and production may be delayed or adversely affected by factors outside  the
control of the Company and the companies operating those drilling programmes.
11. Environmental factors
The  Company's operations are subject to environmental regulation (including regular environmental
impact  assessments  and permitting). Such regulation covers a wide variety of  matters  including
without  limitation,  prevention of waste, pollution and protection  of  the  environment,  labour
regulations and worker safety. The substances which may exist on or under any of its properties or
which may be produced as a result of its operations. Environmental legislation and permitting  are
likely  to  evolve  in  a manner which will require stricter standards and enforcement,  increased
fines  and  penalties  for  non-compliance, more stringent environmental assessments  of  proposed
projects  and  a  heightened  degree  of responsibility for  companies  and  their  directors  and
employees.
12. Political Risks
The  introduction of new legislation or amendments to existing legislation by governments and  the
application  of developments in existing common law in Australia, or the interpretation  of  those
laws, could impact adversely on the assets, operations and ultimately the financial performance of
the Company.
13. Native Title
The  decision of the High Court of Australia in Mabo v The State of Queensland (no2)(1992) 107 ALR
1  ("the  Mabo  Case")  recognised that in certain circumstances it may be possible  for  communal
Native  Title  rights  or interests to exist in relation to certain land in  the  Commonwealth  of
Australia.  The Commonwealth Government enacted the Native Title Act 1993 which allows  indigenous
people  to  lodge Native Title claims over certain land in Australia, and restricts acts involving
land  (including  the  issue of mining leases) which may affect Native  Title  which  continue  to
subsist in that land. The High Court decision in The Wik Peoples v The State of Queensland  (1996)
141  ALR  129  ("the  Wik  Case") held that pastoral leases in that case (in  Queensland)  do  not
necessarily  extinguish Native Title and that Native Title rights and interests can co-exist  with
pastoral  leasehold  rights  and  interests. The Commonwealth  Native  Title  Amendment  Act  1998
clarified  many issues of concern relating to the circumstances in which mining tenures  could  be
issue over land in which Native Title had not been extinguished, putting in place procedures to be
followed  for  resolution of Native Title issues. In the recent case of Western Australia  v  Ward
(2002) HCA 28 (8 August 2002) ("the Ward Case"), the High Court, by majority concluded that  there
was insufficient evidence to establish Native Title rights to minerals or petroleum. In any event,
such  a  right  would have been extinguished by the relevant legislation which vests ownership  of
minerals  and  petroleum in the Crown. However, where Native Title rights  exist  in  relation  to
particular land or waters, inconsistent rights and titles (including mining tenements) which  have
been granted to others in respect of the land or waters may be invalid.
The potential impact of the Commonwealth Native Title Act on the various licences described in the
Admission Document has been investigated by reference to the Native Title Tribunal records.  Where
the  licence  has  been  with "Method/Purpose: low impact methods" prior to any  operations  being
conducted  on any part of a licence of this nature on lands that could be potentially  subject  to
the  provisions of the Commonwealth's "Native Title Act 1993" the right to negotiate process  must
be  followed as required by conditions of the licence to determine if any claim is made in respect
of  any  part of the licence. If a claim is lodged pursuant to the process the licence  holder  is
then  obliged  to reach agreement with the parties in respect of any area validly  claimed.  (Note
that freehold land may not be validly claimed under the provisions of the Native Title Act 1993.
14. Dependence on key personnel
The  success of the Company depends largely upon the expertise of the current Directors and  senor
management  and  their ability to find suitable investments for the Company. The  loss  of  senior
management or technical Directors or their inability to find suitable investments for the  Company
would have an adverse effect on the Company and its viability; whilst the company has entered into
contractual  arrangements with the aim of securing the services of these personnel, the  retention
of their services cannot be guaranteed. Accordingly, the loss of any key management of the Company
may have an adverse effect on the future of its business.
The  Company's future success will also depend, inter alia, on its future directors and management
team.  The  recruitment  of  suitably skilled directors and retention of  their  services  or  the
services of any future management team cannot be guaranteed.
15. Investment risk
The  Ordinary Shares are listed on the ASX. Notwithstanding the fact that an application  will  be
made  for the Ordinary Shares to be traded through PLUS this should not be taken as implying  that
there  will be a "liquid" market in the Ordinary Shares. An investment in the Ordinary Shares  may
thus  be  difficult  to  realise. The value of the Ordinary Shares may go  down  as  well  as  up.
Investors  may therefore realise less than their original investment, or sustain a total  loss  of
their  investment. Continued admission to PLUS is entirely at the discretion of PLUS Markets Group
plc.  PLUS is not AIM or the Official List. Consequently, it may be more difficult for an investor
to sell his or her Ordinary Shares and he or she may receive less than the amount paid. The market
price  of the Ordinary Shares may not reflect the underlying value of the Company's net assets  or
operations.
The share prices of public companies are often subject to significant fluctuations. In particular,
the market for shares in smaller public companies is less liquid than for larger public companies.
Consequently,  the Company's share price may be subject to greater fluctuation  and  the  Ordinary
Shares  may  be difficult to sell. It is likely that the Company will need to raise funds  in  the
future,  either  to complete a proposed acquisition or investment or to raise further  working  or
development  capital for such an acquisition or investment. There is no guarantee  that  the  then
prevailing  market  conditions will allow for such a fundraising or that  new  investors  will  be
prepared  to  subscribe  for Ordinary Shares at any given price. Shareholders  may  be  materially
diluted by any issue of Ordinary Shares by the Company.
Any  changes  to  the regulatory environment, in particular the ASX Rules or PLUS Rules  regarding
companies such as the Company, could for example, affect the ability of the Company to maintain  a
trading facility on either or both of the ASX and PLUS.
16. Additional capital and dilution
The  Directors anticipate that the Company may require additional capital in the future. In  order
to raise such capital the Company may need to raise additional capital from equity or debt sources
to  fund  any such expansion or development. If the Company is unable to obtain this financing  on
terms  acceptable  to it then it may be forced to curtail its planned development.  If  additional
funds  are  raised through the issuance of new equity or equity-linked securities of  the  Company
other  than on a pro rata basis to existing Shareholders, the percentage ownership of Shareholders
may  be  reduced. Shareholders may experience subsequent dilution and/or such securities may  have
preferred  rights, options and preemption rights senior to the Ordinary Shares. There  can  be  no
guarantee that any further capital raisings will be successful.
17. Dividends
There can be no assurance as to the level of any future dividends. The Directors may determine the
dividends  to  be distributed and paid out of profits of the Company to shareholders according  to
their  rights  and interests. The declaration, payment and amount of any future dividends  of  the
Company are subject to the discretion of the Shareholders or, in the case of interim dividends, to
the  discretion  of  the directors of the Company at the time in question, and will  depend  upon,
among other things, the Company's earnings, financial position, cash requirements, availability of
profits, as well as provisions for relevant laws or generally accepted accounting principles  from
time to time.
18. Market perception
Market  perception  of the Company may change for a number of reasons, potentially  affecting  the
value of investors' holdings and the ability of the Company to raise funds by the issue of further
Ordinary  Shares or otherwise. Some of the reasons affecting the market perception of the  Company
may be outside the control of the Company and the Directors.
19. Currency Risk
Currency  fluctuations may affect the cash flow that the Company may realise from its  operations,
as  mineral  production is sold in the world market in United States Dollars. The Company's  costs
are incurred primarily in Australian Dollars. Fluctuations in exchange rates between currencies in
which  the  Company operates in the future may cause fluctuations in its financial results,  which
are not necessarily related to the Company's underlying operations.
20. City Code on Takeovers and Mergers
The Company is incorporated in Australia and accordingly the UK City Code on Takeovers and Mergers
does  not apply to the Company, and the Company will not be subject to takeover regulation in  the
UK.
---Ends---

For further information, please contact:

Silver Mines Ltd:               Charles Straw         Tel:  +61 2 9455 0280
                                                      Email: cstraw@silverminesltd.com.au

Loeb Aron & Co. Ltd.:           Peter Freeman         Tel:  +44 20 7628 1128
                                                      Email: peter@loebaron.co.uk


A copy of the Admission Document is available from Loeb Aron & Co. Ltd. Georgian House, 63 Coleman
Street, London EC2R 5BB


The Directors of Silver Mines Ltd. accept responsibility for the content of this announcement.


Contact Information

  • Silver Mines