VANCOUVER, Feb. 13, 2015 /CNW/ - Wildcat Silver Corporation (TSX: WS) ("Wildcat" or the "Company") announces a general corporate update.
The Company announces that effective January 30, 2015, its directors and the officers have loaned an aggregate of $1.6 million to the Company including $0.685 million advanced in late 2014. The loans are unsecured, bear interest at 12% per annum and are repayable on the earlier of (i) one year from January 30, 2015, (ii) the completion of a financing of $3.5 million or more by way of sale of securities from treasury of the Company or through the issuance of debt or other form of financing, or (iii) a change of control of the Company. A fee of 2% of the principal amount of the loans is payable to the lenders. The net proceeds from the loans will be for general working capital purposed and project advancement.
Board of Directors Update
Wildcat is also pleased to announce that Donald R. Taylor has joined its Board of Directors, effective immediately. Mr. Taylor is currently the Company's President and Chief Operating Officer. Concurrently, Gil Clausen has resigned from the Board to focus on other endeavours. The Company thanks Mr. Clausen for his contribution and commitment over the years.
The Wildcat Board is now comprised of Richard W. Warke (Chairman), R. Stuart Angus, Donald R. Taylor, Donald R. Siemens and Robert P. Wares.
Wildcat is a Canadian mineral exploration company focused on the development of its 80% owned Hermosa silver-manganese project located in Santa Cruz County, Arizona. When in production, Hermosa is expected to be one of the largest primary silver producers as well as the only electrolytic manganese metal producer in the USA at industry low cash costs. The December 2013 pre-feasibility study estimates annual production of 5.7 million ounces of silver and 110 million pounds of electrolytic manganese metal (EMM) at average cash costs of $4.41 per silver ounce and $0.74 per EMM pound over an 18 year mine life.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company's intentions for its Hermosa project in Arizona, USA including, without limitation, any future financing and expected future mineral production and operating costs. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Wildcat, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Wildcat's management's discussion and analysis for the year ended December 31, 2013 ("MD&A"). Wildcat cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled "Risks and Uncertainties" in the MD&A.
Although Wildcat has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Wildcat disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
SOURCE Wildcat Silver Corporation
For further information: Letitia Cornacchia, Vice President, Investor Relations and Corporate Communications, Telephone: +1 416 860 6310, Email: [email protected]