United Silver Sells First Concentrate from New Jersey
News –United Silver Corp. has closed the agreement with Hale Capital Partners first announced on June 4, 2012. Together, USC and Hale formed the Crescent Mine LLC. Under the terms of the LLC, Hale made a net initial contribution of $2.4-million in exchange for a 20-per-cent interest in the Crescent silver mine, located in the Coeur D’Alene silver belt, Idaho. USC had recently acquired this same interest in the Crescent silver mine project from Gold Finder Explorations Ltd. USC is the manager and has an 80-per-cent interest in the LLC. At any time after USC has satisfied its obligation to Hale under the secured convertible note dated Feb. 1, 2012 (see news release dated Feb. 1, 2012), USC may acquire one-half of Hale’s interest in the LLC for a payment equal to the initial contribution.
Other specific terms of the LLC will be disclosed in the LLC agreement which will be publicly filed on SEDAR.
USC is also pleased to announce that the New Jersey mill is in operation, and it has shipped its first load of concentrate from its test mining operations to the refinery owned by Formation Metals. These and future concentrate sales are together expected to generate the cash necessary to complete development and bring the Crescent mine into commercial production.
Graham Clark, chief executive officer of USC, said: “We are very pleased with Hale Capital Partners LP continued support as they become our joint venture partner in the Crescent mine project. This transaction provides us with adequate funding according to our budget to carry out our development plans until commercial production makes the Crescent mine project self-sustaining.”
Martin Hale Jr., chief executive officer of Hale Capital Partners, said: “We are pleased to have the opportunity to expand our relationship with USC. We focus on providing growth capital to strong managers developing exceptional properties. We believe USC fits well with our investment focus.”
About Hale Capital Partners
Based in New York City, Hale Capital Partners has established itself as a leading private equity firm focused on strategic investments in public companies and their subsidiaries. Hale Capital Partners’ team comprises seasoned private equity veterans and entrepreneurs, who bring not only deep domain expertise but also hands-on operating experience to help build highly successful companies. Hale Capital Partners’ mining portfolio spans all stages of mine development from exploration to commercial production.
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