Arian Silver Corporation

Arian Silver Corporation

October 18, 2010 02:00 ET

Arian Silver Announces a Brokered and Non-Brokered Placement to Raise Approximately GBP 3.9 Million



October 18, 2010

Arian Silver Announces a Brokered and Non-Brokered Placement to Raise Approximately GBP 3.9 Million

LONDON, ENGLAND--(Marketwire - Oct. 18, 2010) - Arian Silver Corporation ("Arian" or the "Company") (TSX
VENTURE:AGQ) (AIM:AGQ) (PLUS:AGQ) (FRANKFURT:I3A), a silver exploration, development and production company
with a focus on projects in the silver belt of Mexico, announces that it has appointed Xcap Securities PLC
("Xcap"), the Company's UK broker, as Agent in connection with a financing to raise GBP 3,115,000 (before
expenses) by way of a brokered placement of 17,305,547 common shares of the Company at 18p per common share.
The Company also announces a concurrent non-brokered subscription in Canada of 4,298,888 common shares of the
Company to raise GBP 773,800 (before expenses), also at 18p per common share (collectively the "Placement").

The Company intends to use the proceeds of the Placement to advance an expanded core drilling programme at its
San Jose Property, Zacatecas, Mexico, for the purchase of plant and equipment and for infrastructure
improvements in relation to the contract mining and milling operation at San Jose, as well as for general
working capital and corporate purposes.

The Company has received commitments from proposed subscribers in the UK and Canada that will satisfy the
entire Placement. The Placement is conditional upon receipt of TSX Venture Exchange approval and admission of
the common shares to London's Alternative Investment Market (AIM) ("Admission").

Sprott Asset Management ("Sprott") an insider of the Company has committed to subscribe, on behalf of funds it
manages, for GBP 773,800 of common shares, being the whole non-brokered portion of the Placement.

In connection with the Placement, the Company will pay Xcap a fee of GBP 194,440 on Admission, to be settled in

Commenting, Arian Silver CEO Jim Williams said: "Last month saw the Company move into production at its San
Jose mine and we now look forward to working closely with our recently appointed broker in what the Company
regards as a very healthy market environment. In order to take advantage of the rising silver price and the
healthy market conditions, the financing allows the Company to make efficiency changes to the mill to increase
silver recoveries, and commence, ahead of schedule, a 10,000m diamond drilling programme along the extensive
strike extension of the San Jose Vein."

The anticipated participation of Sprott in the Placement would constitute a "related party transaction" under
Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101")
of the Canadian Securities Administrators, but the Company expects to be exempt from both the formal valuation
and minority shareholder approval requirements of MI 61-101 in connection with the placement as neither the
fair market value of the securities issued, nor the consideration for such securities, in so far as it will
involve the interested party, is not expected to exceed 25% of the Company's market capitalization as
calculated pursuant to MI 61-101.

For purposes of the AIM Rules, Sprott is classified as a Substantial Shareholder in the Company. As such, their
participation in the Placement constitutes a Related Party Transaction. The directors of the Company, having
consulted with Grant Thornton Corporate Finance, consider the terms of Sprott's participation in the Placement
to be fair and reasonable so far as the shareholders are concerned.

Forward Looking Information:

This press release contains certain "forward-looking statements". All statements, other than statements of
historical fact, that address activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without limitation, statements relating to the
commitments from proposed subscribers and the anticipated use of proceeds from the Placement) are forward-
looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company
based on information currently available to the Company. Forward-looking statements are subject to a number of
significant risks and uncertainties and other factors that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they will have the expected consequences to,
or effects on the Company. Factors that could cause actual results or events to differ materially from current
expectations include, but are not limited to the failure to complete the Placement.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking
statements are not guaranteed of future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.


Arian Silver Corporation
Carlyle House
235-237 Vauxhall Bridge Road
London SW1V 1EJ


Arian Silver Corporation
Jim Williams
(London) +44 (0)20 7963 8670


Arian Silver Corporation
Graham Potts
CFO & Corporate Secretary
(London) +44 (0)20 7963 8670


Grant Thornton Corporate Finance
Gerry Beaney
(London) +44 (0)20 7383 5100


XCAP Securities PLC
John Grant
(London) +44 (0)20 7101 7070


XCAP Securities PLC
Karen Kelly
(London) +44 (0)20 7101 7070


Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)20 8980 3545


CHF Investor Relations
Alison Tullis
(Canada) +1 416 868 1079 Ext. 233

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts
responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information
contained herein.

Contact Information

  • Arian Silver Corporation