U.S. Silver Corporation

U.S. Silver Corporation

September 08, 2010 08:07 ET

U.S. Silver Corporation Announces $6 Million Bought Deal Equity Financing

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) -


U.S. Silver Corporation (TSX VENTURE:USA)(OTCQX:USSIF)(FRANKFURT:QE2) (the "Company") is pleased to announce that it has entered into an agreement with Cormark Securities Inc. ("Cormark") (the "Underwriter") to purchase 23,100,000 units ("Units") of the Company on a bought deal private placement basis at a price of $0.26 per Unit. Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant shall be exercisable at any time for one common share at a price of $0.35 per share for a period of two years following closing.

The Company shall have the right, commencing nine months after Closing, to call the outstanding warrants for expiry, upon 30 days notice should the common shares close at or above $0.45 for 20 consecutive trading days. Prior to nine months after Closing the warrants will not be callable for exercise by the Company.

The Underwriter shall be entitled to a cash commission equal to 6.0% of the gross proceeds of the offering. In addition the Underwriter will be granted broker units ("Broker Units") equal to 6% of the number of Units sold under the offering. Each Broker Unit will entitle the Underwriter to purchase units consisting of one common share and one-half of one common share purchase warrant at $0.26 per Unit for a period of two years following the Closing. Each whole warrant will be exercisable for one common share at a price of $0.35 per share for a period of two years following the Closing.

The Underwriter shall also have the option, exercisable prior to the closing of the offering, to purchase up to an additional 3,465,000 Units at the issue price under the offering. The offering is scheduled to close on or about September 29, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The net proceeds of the offering will be for redevelopment of the Coeur Mine and for general working capital purposes.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About U.S. Silver Corporation

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totalling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive SilverValley holdings in the Coeur d'Alene Mining District.

This document may contain or refer to forward-looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. Additional information identifying risks and uncertainties is contained in filing by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

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

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