Silver Mines
LSE : SVLP

April 27, 2011 05:47 ET

Issue of Equity (exercise of options)

                                                                       Rule 2.7, 3.10.3, 3.10.4, 3.10.5
                                              Appendix 3B
                                                   
                                        New issue announcement,
                          application for quotation of additional securities
                                             and agreement

Information or documents not available now must be given to ASX as soon as available.  Information and
documents given to ASX become ASX's property and may be made public.

Introduced  1/7/96.   Origin:  Appendix  5.   Amended 1/7/98, 1/9/99, 1/7/2000,  30/9/2001,  11/3/2002,
1/1/2003, 24/10/2005.


Name of entity
Silver Mines Limited

ACN
107 452 942

We (the entity) give ASX the following information.

Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space).

1    +Class of +securities issued or  to    Ordinary Fully paid shares
     be issued                                     
     
                                          
2    Number  of +securities issued or to    2,827,271
     be  issued  (if known)  or  maximum    
     number which may be issued                    
     
                                          
3    Principal  terms of the +securities  
     (eg, if options, exercise price and       N/A
     expiry   date;   if   partly   paid
     +securities, the amount outstanding
     and  due  dates  for  payment;   if
     +convertible    securities,     the
     conversion  price  and  dates   for
     conversion)
                                          
                                          
4    Do  the +securities rank equally in       
     all  respects  from  the  date   of  Yes
     allotment  with an existing  +class   
     of quoted +securities?                
     
     If the additional securities do not
     rank equally, please state:
     *  the date from which they
        do
     *  the extent to which they
        participate for the next dividend,
        (in   the   case  of  a   trust,
        distribution) or interest payment
     *  the extent to which they
        do not rank equally, other than in
        relation  to the next  dividend,
        distribution or interest payment
                                          
5    Issue price or consideration           2,827,271 - 12 cents per share on conversion of 1         
                                            May 2011 Options
                                            
                                          
                                               
                                          
6    Purpose of the issue                  
     (If issued as consideration for the    Conversion of Options
     acquisition   of  assets,   clearly
     identify those assets)
     
                                          
7     Dates   of   entering  +securities    27 April 2011
      into  uncertificated  holdings  or    
      despatch of certificates
      
                                          
                                          Number                     +Class
8     Number    and   +class   of    all  121,056,810                Fully Paid Ordinary
      +securities    quoted    on    ASX                             Shares
      (including   the   securities   in                             
      clause 2 if applicable)             14,993,495                 Listed Options, exercise
                                                                     price 12 cents, Expiry
                                                                     Date 1 May 2011
                                          


                                          Number                     +Class
9     Number    and   +class   of    all  1,000,000                  Unlisted Options,
      +securities  not  quoted  on   ASX                             exercise price 17 cents,
      (including   the   securities   in                             Expiry 27 August 2011.
      clause 2 if applicable)                                        
                                          2,000,000                  Unlisted Options,
                                                                     exercise price 24 cents,
                                                                     Expiry 27 August 2012.
                                                                     Vest 27 February 2011
                                                            
                                          2,000,000                  Unlisted Options,
                                                                     exercise price 40 cents,
                                                                     Expiry 27 August 2013.
                                                                     Vest - 27 August 2011
                                                                     
                                          5,000,000                  Unlisted Options,
                                                                     exercise price  35
                                                                     cents, Expiry Date 1 May
                                                                     2012
                                                            
                                          8,500,000                  Unlisted Employee
                                                                     Options, exercise price
                                                                     50 cents, Expiry Date 23
                                                                     December  2015
                                                            
                                          3,000,000                  Performance Rights
                                                                     
                                                                     
                                          
10    Dividend policy (in the case of  a  Unchanged
      trust,  distribution  policy)   on
      the increased capital (interests)





Part 2 -  Bonus issue or pro rata issue

11    Is    security   holder    approval  N/A
      required?
      
                                           
12    Is  the issue renounceable or  non-  N/A
      renounceable?
                                           
13    Ratio   in  which  the  +securities  N/A
      will be offered
                                           
14    +Class of +securities to which  the  N/A
      offer relates
                                           
15    +Record     date    to    determine  N/A
      entitlements
                                           
16    Will    holdings    on    different  N/A
      registers   (or  subregisters)   be
      aggregated      for     calculating
      entitlements?
                                           
17    Policy  for  deciding  entitlements  N/A
      in relation to fractions
      
                                           
18    Names  of  countries in  which  the  N/A
      entity  has  +security holders  who
      will   not   be  sent   new   issue
      documents
      
      Note:  Security  holders  must   be
      told how their entitlements are  to
      be dealt with.
      Cross reference: rule 7.7.
                                           
19    Closing   date   for   receipt   of  N/A
      acceptances or renunciations
                                           
20    Names of any underwriters            N/A
                                           
21    Amount  of any underwriting fee  or  N/A
      commission
                                           
22    Names of any brokers to the issue    N/A
                                           
23    Fee  or  commission payable to  the  N/A
      broker to the issue
                                           
24    Amount  of any handling fee payable  N/A
      to  brokers  who lodge  acceptances
      or   renunciations  on  behalf   of
      +security holders
                                           
25    If   the  issue  is  contingent  on  N/A
      +security  holders'  approval,  the
      date of the meeting
                                           
26    Date   entitlement  and  acceptance  N/A
      form   and  prospectus  or  Product
      Disclosure Statement will  be  sent
      to persons entitled
                                           
27    If  the  entity has issued options,  N/A
      and   the   terms  entitle   option
      holders    to    participate     on
      exercise,   the   date   on   which
      notices  will  be  sent  to  option
      holders
                                           
28    Date rights trading will begin  (if  N/A
      applicable)
                                           
29    Date  rights trading will  end  (if  N/A
      applicable)
                                           
30    How   do  +security  holders   sell  N/A
      their  entitlements in full through
      a broker?
                                           
31    How  do +security holders sell part  N/A
      of  their  entitlements  through  a
      broker and accept for the balance?
                                           

32    How  do  +security holders  dispose  N/A
      of  their  entitlements (except  by
      sale through a broker)?
                                           
33    +Despatch date                       N/A
      


Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation of securities

34    Type of securities
      (tick one)
      
(a)   x      Securities described in Part 1
             

(b)          All other securities
             Example:  restricted  securities  at the end of the  escrowed  period,  partly  paid
             securities  that  become  fully  paid,  employee  incentive  share  securities  when
             restriction   ends,  securities  issued  on  expiry  or  conversion  of  convertible
             securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities


Tick   to   indicate   you  are   providing   the              
information or documents

35           If  the  +securities are +equity securities, the names of the 20 largest holders  of
             the  additional +securities, and the number and percentage of additional +securities
             held by those holders
                       
36           If   the  +securities  are  +equity  securities,  a  distribution  schedule  of  the
             additional +securities setting out the number of holders in the categories
             1 - 1,000
             1,001 - 5,000
             5,001 - 10,000
             10,001 - 100,000
             100,001 and over
                       
37           A copy of any trust deed for the additional +securities


Entities that have ticked box 34(b)

38    Number   of  securities  for   which      N/A
      +quotation is sought
      
                                            
39    Class   of  +securities  for   which      
      quotation is sought                       N/A
      
                                            
40    Do  the +securities rank equally  in      N/A
      all   respects  from  the  date   of
      allotment  with  an existing  +class
      of quoted +securities?
      
      If  the additional securities do not
      rank equally, please state:
      *   the  date from which they
          do
      *   the  extent to which they
          participate for the next dividend,
          (in   the   case  of  a   trust,
          distribution) or interest payment
      *   the  extent to which they
          do not rank equally, other than in
          relation  to the next  dividend,
          distribution or interest payment
                                            
41     Reason  for  request for  quotation  
       now                                  N/A
       
       Example:  In the case of restricted
       securities,   end  of   restriction
       period

       (if issued upon conversion of
       another security, clearly identify
       that other security)

                                            
                                            Number                     +Class
42    Number    and    +class    of    all  N/A                        N/A
      +securities    quoted     on     ASX
      (including the securities in  clause
      38)
      
      
      

Quotation agreement

1       +Quotation  of our additional +securities is in ASX's absolute discretion.  ASX may  quote  the
        +securities on any conditions it decides.

2       We warrant the following to ASX.

                - The  issue  of  the +securities to be quoted complies with the law and is  not  for  an
                  illegal purpose.

                - There is no reason why those +securities should not be granted +quotation.

                - An  offer  of  the  +securities for sale within 12 months after their  issue  will  not
                  require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.
                
                  Note:  An  entity  may need to obtain appropriate warranties from subscribers  for  the
                  securities in order to be able to give this warranty

                - Section  724  or  section  1016E  of  the  Corporations  Act  does  not  apply  to  any
                  applications received by us in relation to any +securities to be quoted and  that  no-
                  one  has any right to return any +securities to be quoted under sections 737,  738  or
                  1016F  of  the  Corporations Act at the time that we request that the  +securities  be
                  quoted.
        
                - If  we  are  a trust, we warrant that no person has the right to return the +securities
                  to  be  quoted under section 1019B of the Corporations Act at the time that we request
                  that the +securities be quoted.

3       We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or
        expense arising from or connected with any breach of the warranties in this agreement.

4       We  give  ASX  the  information and documents required by this form.   If  any  information  or
        document  not  available now, will give it to ASX before +quotation of the +securities  begins.
        We  acknowledge that ASX is relying on the information and documents.  We warrant that they are
        (will be) true and complete.


Sign here:          ......................................................    Date:  27 April 2011
                    (Company Secretary)

Print name:         Kevin Martin Lynn
                    == == == == ==
                                            
                                            
+ See chapter 19 for defined terms.                                            

Contact Information

  • Silver Mines