U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

December 05, 2007 12:56 ET

U.S. Silver Corporation Increases Size of Bought-Deal Financing by $4.5 Million and Announces $24.5 Million Closing

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

U.S. Silver Corporation (TSX VENTURE:USA) today announced the successful closing of its previously announced bought-deal underwritten private placement (the "Private Placement") led by Research Capital Corporation and Cormark Securities Inc. as underwriters (the "Underwriters"). Following strong investor demand, the size of the Private Placement was increased by $4.47 million, resulting in aggregate proceeds raised of $24.47 million. Pursuant to the Private Placement, 24,470,000 units of securities of U.S. Silver (the "Units") were issued at a price of $1.00 per Unit, each Unit consisting of one common share of U.S. Silver ("Common Share") and one-half of one common share purchase warrant. Each whole share purchase warrant ("Warrant") entitles the holder thereof to purchase one Common Share at an exercise price of $1.25 for a period of 24 months following the closing of the financing, expiring on December 5, 2009. The Units and underlying securities will be subject to a four month hold period following closing of the Private Placement, expiring on April 6, 2008.

For consideration of the Underwriters' services, the Underwriters received a cash commission of 7% of the proceeds raised and compensation options to purchase an aggregate of 1,712,900 Units (equal to 7% of the aggregate number of Units issued pursuant to the Private Placement), exercisable at $1.00 per Unit and expiring on December 5, 2009.

The proceeds received by U.S. Silver from the financing will be used to fund the continued exploration and development of U.S. Silver's properties and for working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. 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 the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT U.S. SILVER CORPORATION

U.S. Silver owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in US history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding its production from existing operations as well as exploring its extensive Silver Valley holdings.

Cautions Regarding Forward-Looking Statements

Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of U.S. Silver as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to risks, uncertainties and other factors that are beyond the control of U.S. Silver, risks associated with the mining industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Assumptions relating to certain forward-looking information contained in this press release are set out herein. Although U.S. Silver believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of U.S. Silver contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

Contact Information

  • U.S. Silver Corporation
    Bruce Reid
    Chief Executive Officer
    (416) 848-0858
    or
    Tydewell Consulting
    Vance Loeber
    Investor Relations
    (604) 805-3530