November 10, 2010 by staff
Silver Prices, Silver Corporation U.S. (TSX: U.S., OTCQX: USSIF, Frankfurt: QE2) “U.S. Silver” or “the Company” is pleased to announce that it has entered into a price protection program Silver with Auramet Trading LLC. U.S. Silver has obtained a minimum price of U.S. money and 27.50 per troy ounce at 500,000 ounces. The program covers 500,000 ounces equal amounts of money for each calendar month during 2011. As the Security, U.S. Silver has provided interest income security deposit in cash and U.S. 3,000,000 and obtained a credit facility of margin. This margin requirement decreases as the volume of money is delivered throughout 2011.
The guarantees cover the Company will realize significant cash flow positive over the current cost of production at the Galena mine. The price of 27.50 and ranks among the highest prices recorded for the money over the past 30 years. Although this program ensures the safety of positive cash flow on the 500,000 ounces of gold sold, the Company retains full upside potential of about 80% of its silver production estimated for 2011.
Tom Parker, President and CEO of U.S. Silver said: “With the recent rise in silver prices and extreme volatility we have seen, U.S. Silver has considered it prudent to guarantee part of our flow future cash flows. With capital costs associated with the redevelopment of the mine Heart and ongoing programs of capital expenditures and exploration at the Galena mine, protecting some of our volumes of money to these high price levels is considered a risk reduction exercise wise. While U.S. Silver has always been a game of money not covered, ensuring a high sales price for about 18% of our production 2011 is a prudent thing to do. ”
About Corporation U. S. SILVER
U.S. Silver, through its wholly owned subsidiaries, owns and / or operates the Galena, Coeur, and Caladay Dayrock silver mines copper-lead-in Shoshone County, Idaho, with the Galena mine being the second mine money the most prolific of American history. Total silver production from U.S. Silver mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 14,000 hectares in the heart of the Coeur d’Alene Mining District. U.S. Silver is focused on expanding production from existing operations and exploration and development of its extensive Silver Valley holdings in the Coeur D’Alene Mining District.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements unless and until required by legislation securities of the Company. Additional information identifying risks and uncertainties is contained in documents filed by the Company with Canadian securities regulatory authorities, which documents are available at www.sedar.com.
Neither TSX Venture Exchange nor the provider of settlement services (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
U. S. Silver Corporation
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