/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES/
TORONTO, May 22, 2013 /CNW/ - Oremex Silver Inc. ("Oremex" or the "Company") (TSX Venture: OAG) (OTCQX: ORAGF) (Frankfurt: OSI) Oremex Silver is pleased to provide a comprehensive update of its
activities and corporate plan for the coming twelve months.
Pursuing a strategy to realize maximum financial value for its non-core
Taking action to advance and demonstrate value at its flagship 50
million oz Tejamen silver deposit
The appointment of Mr. Rod Prat and Mr. Keith Minty P.Eng to the Board
The appointment of Mr. Jeffrey Lowe as Chief Financial Officer
A response to the recent statement from Concept Capital Management
Oremex Silver has developed and advanced a pure-silver focused portfolio
of projects that management believes holds tremendous fundamental value
for shareholders. In a manner very similar to what the majority of
junior resource companies around the world are experiencing, management
believes Oremex Silver's market capitalization is not in line with the
fundamental value of its assets. For most junior resource companies
this recent period has been the most challenging capital markets
conditions experienced in decades, and has negatively impacted the
liquidity and share price of Oremex Silver.
Oremex Silver has been pursuing a strategy for the past several months
to demonstrate and realize the financial value of its silver portfolio
investments. This portfolio consists of the flagship, 50 million oz
Tejamen silver deposit and three "non-core" projects in development:
The San Lucas silver project
The Chalchihuites silver-lead-zinc project
The El Sol silver project
Realization of Financial Value for Non-Core Assets
While the non-core assets have significant value, the Board of Oremex
Silver believes that the capital requirement for the continued
development of these projects would be to the detriment of investing in
and realizing full value potential of the Tejamen deposit. The
divestiture of non-core assets will enable the company to strengthen
its balance sheet, provide financing to the company that is
non-dilutive to the share structure and allow for the continued
advancement and greater focus on the 50 million oz Tejamen silver
In recent months the company has continued to receive unsolicited
expressions of interest in respect of all of its non-core assets. The
Board of Directors is of the strong view that it can potentially
realize maximum financial value for these non-core assets in the
near-term by aggressively pursuing this strategy.
Focus on the Tejamen Deposit
The Company has engaged Snowden Engineering ("Snowden") to update the
Preliminary Economic Assessment ("PEA") of the Tejamen Deposit
utilizing current metal prices and economic assumptions. A site visit
has been completed and Oremex Silver expects that the updated report
will be available shortly. Snowden completed a PEA in 2006 that
assumed a base case silver price of $7.00.
Appointment of New Directors
The Board is pleased to announce the addition of Mr. Rod Prat and Mr.
Keith Minty P.Eng to the Board of Directors.
Rod Prat is a Canadian mining finance professional and the founder of
Trident Merchant Partners, a merchant bank that structures
transactions, advises, and invests as principal in resource companies.
Mr. Prat holds a degree in economics from Queen's University in
Kingston, Ontario, and an MBA from the University of Chicago.
Following 9 years with Goldman Sachs in Toronto, New York and London,
Rod served as Co-Head of Institutional Sales for Global Markets in EMEA
for Deutsche Bank, and later held senior Global Markets management
positions for HSBC in New York and London as a member of the Global
Markets Management Committee.
Rod left Wall Street in late 2008 to consult to the Bank of Canada on
financial market policies focused on maintaining liquid market
conditions. In this capacity he reported directly to Governor Carney.
Thereafter, he returned to Wall Street in 2010 as Global Head of
Derivatives for BNY Mellon.
Rod has a deep understanding of markets, risk management and corporate
Keith Minty P.Eng has more than 30 years of professional experience in
mineral resource exploration and development in precious and base
metals, industrial minerals and coal in Canada and internationally.
Mr. Minty has successfully and profitably constructed, operated and
managed gold and platinum metal projects. Mr. Minty held senior
operating and management positions with Hunter Dickinson, Viceroy
Resources, North American Palladium and Thani Investments. Mr. Minty
from 2008 - 2013, was the Chief Operating officer for Thani Investment
Ltd., (a private Dubai based Venture Capital Group) subsidiary Thani
Emirates Resources Ltd., and was primary responsible for unlocking
value from their worldwide mineral resource projects.
Mr. Minty obtained a B.Sc. in Mining Engineering from Queen's
University, Kingston Ontario, in 1978. In 2000, Mr. Minty was awarded
the prestigious "Mining Man of the Year" Award by the Northern Miner
for outstanding achievement in the Canadian Mining Industry.
Appointment of Jeffrey Lowe as Chief Financial Officer
Jeffrey Lowe has been appointed Chief Financial Officer of the Company.
Mr. Lowe has significant experience across diverse industries including
mining, consumer products, and telecom. He has held the roles of CFO
and Treasurer for a number of public companies and has significant
experience in financial restructuring. Jeff holds an MBA from the
Rotman School of Management, University of Toronto, is a Certified
General Accountant, and holds the accreditation ICD.D as a member of
the Institute of Corporate Directors.
Response to the Statement from Concept Capital Management
As previously announced on October 10, 2013, Oremex Silver completed a
convertible debenture financing with Concept Capital Management (CCM)
and certain other investors, raising gross proceeds of $727,500 through
the issuance of debenture units as well as other considerations. The
obligations of the Company under the debentures are guaranteed by the
Company's Mexican subsidiary, Minera Mantos S. de R.L. de C.V. , and is
secured by a pledge of some mining concessions, including the Company's
Tejamen and Chalchihuites properties. The Company's obligations under the convertible debentures remain in
In connection with the issuance of the convertible debentures, the
Company agreed to pay the reasonable legal fees incurred by CCM. CCM's
legal bills exceeded the agreed upon amount and the Company has
previously indicated to CCM that it is not prepared to pay amounts in
excess of the amount agreed to at the time. The Company has made
attempts at a proposal around such fees in order to secure the
necessary consent from CCM, on behalf of the convertible debentures
holders, which has been requested and is required in order for the
Company to continue to pursue and execute on its near-term business
strategy of seeking to realize financial value for one of its non-core
assets. To date, the Company has not received such consent.
Oremex Silver is appreciative of the attempts by CCM to locate what it
believes to be suitable candidates for representation on the Board of
Directors. Prior to the CCM statement being released, Oremex Silver
had expressed a willingness to discuss the business strategy of the
company and the views of the proposed candidates along with a level of
Board representation. The Board of Oremex Silver remains open to a
discussion of ideas to provide an understanding of the financial
benefit to be derived from the current strategy being pursued, and how
this will maximize the value of the company's assets for all
About Oremex Silver Inc.
Oremex is a Canadian company focusing on the exploration and development
of silver projects along the highly productive mineralized belt in
Mexico. The Company has a portfolio of silver projects including a
mineral resource of 50.8 million ounces of silver at its Tejamen
deposit. The Company's projects are located in mining-friendly
jurisdictions and the management team has successful track record of
mine-building in Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute
forward-looking information, (collectively "forward-looking
information") within the meaning of Canadian securities laws.
Forward-looking information may relate to this news release and other
matters identified in Oremex's public filings, anticipated events or
results and can be identified by terminology such as "may", "will",
"would", "could", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "projects", "predict", "potential", "continue" or
other similar expressions concerning matters that are not historical
facts and include, but are not limited in any manner to, those with
respect to entering into definitive and binding agreements with respect
to financings, capital and operating expenditures, economic conditions,
availability of sufficient financing, receipt of approvals, the receipt
of exemptive relief from securities requirements, satisfaction of
closing conditions and any and all other timing, development,
operational, financial, economic, legal, regulatory and/or political
factors that may influence future events or conditions. Such
forward-looking statements are based on a number of material factors
and assumptions, including, but not limited in any manner, those
disclosed in any other public filings of Oremex, and include the
ultimate availability and final receipt of required approvals and/or
exemptive relief, the decision of third parties to consummate
definitive agreements with Oremex, sufficient working capital for
development and operations, access to adequate services and supplies,
availability of markets for products, commodity prices, foreign
currency exchange rates, interest rates, access to capital markets and
other sources of financing and associated cost of funds, availability
of a qualified work force, availability of manufacturing equipment, no
material changes to the tax and regulatory regime and the ultimate
ability to execute its business plan on economically favourable terms.
While we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
Actual results may vary from such forward-looking information for a
variety of reasons, including but not limited to risks and
uncertainties disclosed in other Oremex Silver filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by
law, Oremex Silver does not intend, and undertakes no obligation, to
update any forward looking information to reflect, among other things,
new information or future events.
Neither the TSX Venture nor its Regulation Service Provider (as that
term is defined in the policies of the TSX Venture) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE: Oremex Silver Inc.
For further information:
Oremex Silver Inc.
P: +1 416.309.4321