United Silver Corp.: Secured Creditor Requires Full Payment
VANCOUVER, British Columbia--(BUSINESS WIRE)--United Silver Corp. (“United Silver Corp.”, the “Company”, or “USC”: TSX; USC: OTC; USCZF: Frankfurt: UM8) announces that further to its press release dated August 1, 2013, HUSC, LLC, the Company’s secured lender, has commenced legal action in New York to collect on its secured loan and to take over management of the Crescent Mine joint venture operations. The Company disputes that an event of default has occurred, states that the legal action is not justified, and intends to defend the action vigorously. The Company has until early October, 2013, to file a reply.
The Company has been negotiating with several parties with respect to the refinance of the HUSC debt and the further development of the Crescent Mine, but there is no binding or definitive agreement yet reached. The Company will provide further updates if and when an agreement may be reached.
ABOUT UNITED SILVER CORP.
USC is a vertically integrated Canadian mining company with operations in Idaho, USA. It has an 80% interest in the Crescent Silver Mine project in the Silver Valley’s prolific Silver Belt - directly between two of the district’s historically largest silver producing properties, the Sunshine and Bunker Hill mines. USC also offers a full suite of mining services including contract mining and providing a complete fabrication shop and service for building and repairing mining equipment to silver miners in the district. USC's common shares trade on the Toronto Stock Exchange under the symbol "USC". For more information about USC, please visit: www.unitedsilvercorp.com
ON BEHALF OF UNITED SILVER CORP.
Chairman and CEO
Tel. (855) 238-0202
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press release include that we can defend the legal action commenced by HUSC, LLC, refinance our debt and further develop the Crescent Mine. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: that our defences may not be accpeted by a court, that we may not be able to raise financing to pay off HUSC, results of exploration and development activities, mis-estimation of mineral reserves and resources, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain sufficient financing, the inability to pay our debts as they become due, labor shortages, the inability to keep key employees, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.