Silver Mines
LSE : SVLP

October 08, 2010 07:55 ET

Issue of Equity

                                                                         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 be issued              1.  Shares
                                                               2.  Unlisted Options
                                                               3.  Unlisted Options

2    Number  of +securities issued or to be issued (if known)  1.  551 ordinary shares
     or maximum number which may be issued                     2.  1,000,000 Unlisted Options
                                                               3.  1,300,000 Unlisted Options

3    Principal terms of the +securities (eg, if options,       1.  N/A
     exercise price and expiry date; if partly paid            2.  Exercise price 7 cents, Expiry
     +securities, the amount outstanding and due dates for         10 July 2013 
     payment; if +convertible securities, the conversion       3.  Exercise price 17 cents, Expiring
     price and dates for conversion)                               27 August 2011    

4    Do the +securities rank equally in all respects from      1.  Yes
     the date of allotment with an existing +class of quoted   2.  N/A
     +securities?                                              3.  N/A

     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                              1.  12 cents per share
                                                               2.  Nil, for services rendered
                                                               3.  Nil, for services rendered

6    Purpose of the issue (If issued as consideration for
     the acquisition of assets, clearly identify those assets) 1.  Conversion of Options  
                                                               2.  In consideration for services completed
                                                                   per Agreement dated 19 July 2009
                                                               3.  In consideration for services rendered per
                                                                   contract dated 27 August 2010

7    Dates of entering +securities into uncertificated         8 October 2010
     holdings or despatch of certificates                    

                                                               Number             +Class
8    Number and +class of all +securities quoted on ASX        94,189,292         Fully Paid Ordinary Shares
     (including the securities in clause 2 if applicable)      30,560,995         Listed Options Exercise price 12
                                                                                  cents, Expiry Date 1 May 2011

                                                               Number             +Class
9    Number and +class of all +securities not quoted on ASX    1,000,000          Unlisted Options, exercise price
     (including the securities in clause 2 if applicable)                         17 cents, Expiry 27 August 2011

                                                               1,300,000          Unlisted Options, exercise price 17 
                                                                                  cents, Expiry 27 August 2011

10   Dividend policy (in the case of a trust, distribution
     policy) on the increased capital (interests)


Part 2 -  Bonus issue or pro rata issue

11   Is security holder approval required?

12   Is the issue renounceable or non-renounceable?

13   Ratio in which the +securities will be offered

14   +Class of +securities to which the offer relates

15   +Record date to determine entitlements

16   Will holdings on different registers (or subregisters)
     be aggregated for calculating entitlements?

17   Policy for deciding entitlements in relation to fractions

18   Names of countries in which the 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 acceptances or renunciations

20   Names of any underwriters

21   Amount of any underwriting fee or commission

22   Names of any brokers to the issue

23   Fee or commission payable to the  broker to the issue

24   Amount of any handling fee payable to brokers who lodge
     acceptances or renunciations on behalf of +security holders

25   If the issue is contingent on +security holders' approval,
     the date of the meeting

26   Date entitlement and acceptance form and prospectus or
     Product Disclosure Statement will be sent to persons
     entitled

27   If the entity has issued options, 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 applicable)

29   Date rights trading will end (if applicable)

30   How do +security holders sell their entitlements in full
     through a broker?

31   How do +security holders sell part of their entitlements
     through a broker and accept for the balance?


32   How do +security holders dispose of their entitlements
     (except by sale through a broker)?

33   +Despatch date


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 +quotation is sought

39   Class of +securities for which quotation is sought

40   Do the +securities rank equally in 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 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 +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:  9 October 2010
                (Company Secretary)

Print name:      Kevin Martin Lynn

Contact Information

  • Silver Mines