Minco Silver Secured Debt Financing for the Fuwan Silver Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/08/10 -- Minco Silver Corporation (the 'Company' or 'Minco Silver') (TSX: MSV) is pleased to announce that, through its operating subsidiary Foshan Minco Fuwan Mining Co., Ltd. ('Foshan Minco'), it has received conditional commitment of a project debt facility in the amount of RMB 300 million (approximately US$44.17 million) from the Guangdong Branch of the Industrial and Commercial Bank of China ('ICBC' or the 'Bank') for the Company's Fuwan Silver Project.
The debt facility represents approximately 60% of the total projected capital expenditure of US$73.1 million for the Fuwan Silver Mine construction, as outlined by the Bankable Feasibility Study announced on September 28, 2009.
'We are very pleased to receive the financial backing towards the development and construction of our flagship Fuwan Silver Project, especially from ICBC which is the largest commercial bank controlled by the Chinese central government,' commented Dr. Ken Cai, Chairman and CEO of Minco Silver. 'The loan commitment from ICBC demonstrates the support from the government on this project. Together with the approximately C$20 million of working capital on hand, Minco Silver is in a position to finance vast majority of the capital requirement for the construction of the mine. This is another major milestone the Company achieved towards bringing the Fuwan Silver Project into production.'
The final loan agreement and terms are subject to final approval by the Bank upon all pertinent loan conditions being met, mainly the receipt of the mining license. Foshan Minco paid fees totaling RMB 100,000 (approximately US$14,700) to the Bank in relation to the loan application.
About Minco Silver
Minco Silver Corporation (TSX: MSV) is a TSX listed company focusing on the acquisition and development of silver dominant projects. The Company owns 90% interest in the world class Fuwan Silver Deposit, situated along the northeast margin of the highly prospective Fuwan Silver Belt. For more information on Minco Silver, please visit the website at www.mincosilver.ca.
ON BEHALF OF THE BOARD
Dr. Ken Z. Cai, Chairman & CEO
Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. The Company undertakes no obligation and has no intention of updating forward-looking statements.
The Toronto Stock Exchange does not accept responsibility for the accuracy of this news release.
Contacts:
Minco Silver Corporation
Ute Koessler
1-888-288-8288 or (604) 688-8002
ir@mincosilver.ca
www.mincosilver.ca