Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

July 28, 2009 14:09 ET

Silvermet and Cooper Island Complete Transaction

TORONTO, ONTARIO--(Marketwire - July 28, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to announce that it has completed the previously announced revised financing arrangement with Cooper Island Investments, LLC ("Cooper Island"). Under the terms of the definitive share subscription and purchase agreement, Cooper Island exchanged its US$2,000,000 loan for a 25% equity interest in Silvermet's Turkish operations. In addition, the common share purchase warrants of Silvermet that Cooper Island received in connection with the loan were cancelled. Silvermet issued 367,000 common shares to Cooper Island at a price of $0.1454 per share to satisfy accrued interest on the US$2,000,000 loan. These common shares are subject to both TSX Venture Exchange and statutory resale restrictions, in each case expiring November 29, 2009.

At any time prior to March 31, 2010, Silvermet can call on Cooper Island to make additional equity investments in its Turkish operations in US$250,000 tranches up to an aggregate of US$2,000,000. Silvermet has the right to maintain its interest by contributing its proportionate share of additional capital within 60 days of Cooper Island's investment. To the extent Silvermet does not contribute its proportionate share, Cooper Island's equity interest in Silvermet's Turkish operations will increase by 3.125% for every US$250,000. If Silvermet were to call on Cooper Island to make the full US$2,000,000 additional investment and Silvermet did not contribute any funds, Cooper Island's interest would increase to a 50% equity interest in Silvermet's Turkish operations.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Silvermet Inc.
    Stephen G. Roman
    Chairman & CEO
    (416) 203-8336
    (416) 368-5146 (FAX)
    or
    Silvermet Inc.
    Rein A. Lehari
    President & COO
    (416) 203-8336
    www.silvermet.ca