Scorpio Mining Debt Free with Repayment of Debentures
TORONTO, May 5 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
TSX:SPM
TORONTO, May 5 /CNW/ - Scorpio Mining Corporation (TSX:SPM) ('Scorpio
Mining' or the 'Corporation') announces that it has executed payment of
CDN $20 million to retire fully all issued and outstanding 7% unsecured
subordinated convertible debentures of the Corporation (the
'Debentures'), which matured on May 5, 2011. The payments were made
using funds generated by the Corporation from its Nuestra Señora
operation in Sinaloa State, Mexico. By repaying the Debentures the
Corporation is now completely debt free.
Parviz Farsangi, President and CEO, states: 'It is the solid performance
of the Nuestra Señora operation in the last two consecutive quarters
that has allowed the Corporation to eliminate its debt. We are
confident we will meet our 2011 commitments as previously stated, and
continue to grow through development of our many existing assets. We
believe the Corporation stands among the best performing silver
producers with significant base metal by-product credits in Mexico.'
ON BEHALF OF SCORPIO MINING CORPORATION
Parviz Farsangi
President & CEO
This news release includes certain statements that may be deemed
'forward-looking statements' within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities legislation. Forward-looking statements include,
but are not limited to, statements with respect to production,
objectives, strategy, mine operations, exploration, future performance
and forecasts, our management team, and plans. Generally, these
forward-looking statements can be identified by the forward-looking
terminology such as 'plans', 'expects' or 'does not expect', 'is
expected', 'budget', 'scheduled', 'estimates', 'projects', 'intends',
'anticipates', or 'does not anticipate', or 'believes', or 'variations
of such words and phrases or state that certain actions, events or
results 'may', 'can', 'could', 'would', 'might', or 'will' be taken',
'occur' or 'be achieved'. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of
Scorpio Mining Corporation to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to: risks related to the exploration and development and
operation of the Nuestra Señora and La Verde projects, risks related to
international operations, construction delays and cost overruns,
equipment breakdowns, the actual results of current exploration,
development and construction activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be
refined, future prices of silver, zinc, copper, lead and gold, risks
relating to completing acquisition transactions as well as those
factors discussed in the sections relating to risk factors of our
business filed in Scorpio Mining Corporation's required securities
filings on SEDAR, including its Annual Information Form dated March 30,
2011. Although Scorpio Mining Corporation has attempted to identify
important factors that could cause results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results to be materially different from those
anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. Scorpio Mining
Corporation does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance with
applicable securities laws.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/05/c9832.html
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: rkaiser@scorpiomining.com