SNS Silver Corp.

SNS Silver Corp.

October 28, 2009 15:33 ET

SNS Silver Closes Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 28, 2009) -


SNS Silver Corporation (TSX VENTURE:SNS) ("SNS") announces the closing of the second tranche of the previously announced non-brokered private placement. The second tranche closed a total of 6,925,000 Units at a price of $0.10 per Unit (the "Offering") for gross proceeds of $692,500. Each Unit consists of one common share (a "Share") and one full common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one additional Share for a period of 24 months following closing at an exercise price of $0.20. Combined with the first tranche closing, announced September 1, 2009, the Company has issued 10,965,000 Units for gross proceeds of $1,096,500.

Proceeds from the Offering will be used to finance the company's intended acquisition of the Golden Rose Gold project, continuing exploration and the scoping study currently in progress at the Crescent Mine in the Silver Valley, Idaho, and for general working capital. Securities issued in the second tranche of this Offering will have a hold period expiring on February 26th, 2010.

Insiders subscribed for a total of 900,000 units under this offering.

Finders' fees on a portion of the Offering was paid as follows: 140,000 shares payable to John Percival, $4,500 payable to Joel Warawa; $8,400 payable to Steve Parhar; $3,500 and 35,000 warrants payable to Canaccord Adams; $13,405 and 134,050 warrants payable to Global Securities Corporation; and $3,990 and 39,900 warrants payable to Union Securities Ltd.

SNS also announces that Andover Ventures Inc ("Andover") has paid the Company $1,000,000 and issued the Company 4,000,000 common shares of Andover in accordance with the settlement agreement announced on September 2, 2009.

Mr. David Greenway, President and CEO, stated : "SNS is pleased to have recovered it's loan from Andover Resources and this leaves SNS in an enviable cash position as it proceeds with it's acquisition of Golden Rose."

SNS Silver also announces the appointment of Grant T. Smith, CA as Chief Financial Officer, effective October 26, 2009. Mr. Smith replaces Mr. Ron Ho, who has resigned to pursue other opportunities. Mr. Smith has experience in a wide range of operating and exploration mining companies throughout North and South America. Mr. Smith is currently the CFO of Premium Exploration Incorporated, a TSX-V listed exploration mining company, and was previously the CFO for Aurcana Mining Corporation a silver producer in Mexico. Mr. Smith is currently a senior manager at Johnsen Archer, LLP.

Mr. David Greenway, President and CEO, stated, "We'd like to thank Mr. Ho for his effort and service over the past years, and we wish him luck on his future endeavours. I am pleased to have Mr. Smith on board at SNS, as we pursue a renewed direction for our company."

SNS Silver Corp. owns 100% of the Crescent Mine in the Coeur d'Alene mining district. The Crescent Mine is a historic high-grade silver producer. From 1917-1982 the property produced 25 million ounces of silver at an average grade of 27.3 ounces per ton. Prior to its last shut down in the 80's, previous operators of the Crescent Mine reported over 9 million ounces of silver resources at an average grade of 18 ounces per ton. The property lies between two world-class silver producers: the Sunshine mine which has produced more than 300 million ounces of silver and the Bunker Hill mine, which has produced over 150 million ounces of silver. The Coeur d'Alene district is the only known mining district in North America to have produced over 1 billion ounces of silver. SNS Silver (SNS) trades on the TSX-V under the symbol SNS. The Company has approximately 39.1 million shares outstanding and approximately $20.1 million cash on hand.

All resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Crescent Mine will require considerable further evaluation, which the Company's management and consultants are in the process of completing.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

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