Press release from Marketwire
South American Silver Files First Quarter 2013 Financial Statements and MD&A
Friday, May 10, 2013
South American Silver Files First Quarter 2013 Financial Statements and MD&A18:22 EDT Friday, May 10, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2013) - South American Silver Corp. (TSX:SAC)(OTCQX:SOHAF) reports the release of its unaudited condensed interim consolidated financial statements for the three months ended March 31, 2013 and the related management's discussion and analysis of financial position and results of operations ("MD&A").
As at March 31, 2013, the Company had cash and cash equivalents of US $20.2 million. The Company also owns a 19.9% equity interest in High Desert Gold Corporation (TSX VENTURE:HDG)(OTCQX:HDGCF) which had a quoted value as at March 31, 2013 of Cdn. $2.2 million.
In Chile, drilling for the season ended on May 2, 2013 at the Escalones copper-gold project. A total of 9,070 metres of drilling were completed this season. The drilling program is intended to fill gaps in the resource model in order to expand inferred resources in the porphyry and skarn environments. An updated NI 43-101 resource estimate is scheduled for completion by mid-year.
In Bolivia, the Company's wholly-owned subsidiary, South American Silver Limited, commenced international arbitration against the Government of Bolivia on April 30, 2013, after the cooling-off period ended on April 23, 2013. SAC is seeking compensation based on fair market value of the Malku Khota project, under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) pursuant to the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Bolivia for the Promotion and Protection of Investments (UK-Bolivia Treaty).
Now that the arbitration has commenced, the Bolivian Government has until May 30, 2013 to respond and an arbitration tribunal will be empanelled in the coming months. Thereafter, the tribunal will set a provisional timetable for the arbitration itself. This will include a schedule for submission of a Statement of Claim, Statement of Defense and oral hearings at a court of arbitration to be designated. Unless there is a negotiated settlement of the dispute, it is expected that the arbitration can take up to 2-3 years from commencement of proceedings until rendering of a final award.
The immediate priorities of the Company for 2013 remain to (i) diligently manage and preserve the Company's cash resources; (ii) announce an updated NI 43-101 technical report with a view of expanding inferred resources at Escalones by mid-year; (iii) evaluate the potential of joint venturing future stages of Escalones; (iv) recover fair market value for the Malku Khota project by pursuing international arbitration proceedings against Bolivia at the same time remaining open to a negotiated settlement; (v) evaluate proposals for at-risk, non-recourse third-party funding of the Bolivian arbitration costs; (vi) evaluate the potential for acquiring new attractive exploration targets through strategic mergers and acquisitions; and (vii) rebrand the Company to reflect its new strategic direction.
Further details including copies of the unaudited financial statements and related MD&A can be found on SEDAR at www.sedar.com and on the Company's website at www.soamsilver.com.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the large scale Escalones copper-gold project in Chile, the pursuit of new opportunities, and the realization of value from the Malku Khota project in Bolivia. South American Silver Limited is a company incorporated in the Bermuda Islands, an overseas territory of the United Kingdom, which through its wholly owned Bahaman subsidiaries: Malku Khota Ltd, G.M. Campana Ltd. and Productora Limited., owns one hundred per cent of the outstanding shares of Compañía Minera Malku Khota S.A., a Bolivian company, holder of the Malku-Khota mining concessions until their nationalization by the Bolivian Government. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the OTCQX as "SOHAF". Information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "will", "intended", "expand", "new", "potential", "future", "can", "scheduled", "expected", "creating", "realization" and "pursuing" and similar expressions. This News Release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia; the international arbitration process; and risks of the mineral exploration industry which may affect the advancement of the Escalones project, including possible variations in mineral resources or grade, metal prices, availability of sufficient financing to fund further required work in a timely manner and on acceptable terms, timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, road access to the property, changes in project parameters as plans continue to be refined; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the ability of the Company to realize value from its investments in Bolivia the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the timely receipt of required permits for Escalones; the availability of equipment and qualified personnel to advance the Escalones project; execution of the Company's existing plans and further exploration and development programs for Escalones, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; and the availability of new attractive exploration targets at a cost acceptable to the Company.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this News Release describe the Company's expectations as of May 10, 2013.
FOR FURTHER INFORMATION PLEASE CONTACT:
South American Silver Corp.
604-681-6926 or 1-855-681-6926 Toll Free