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Tuesday, 3 September 2013
Arian Silver completes convertible issue and plant purchase
Arian Silver (LON:AGQ, CVE:AGQ) has successfully completed the private placement of debt announced on August 23 and as a result has sealed the acquisition of a processing plant.
The company has raised US$15.59mln through the issue of senior secured convertible notes, enabling it to close the previously announced deal to purchase a processing plant with a capacity to treat up to 1,500 tonnes per day of silver-lead-zinc ore at a cost of US$3.12 million.
Jim Williams, chief executive officer of Arian, said getting the debt issue away in such difficult market circumstances was a testament to the quality of the company's mineral resource and a sign of confidence in management's ability to put the mill into operation and resume operations.
“The acquisition of this mill is a long-awaited development for the company which is expected to enable Arian to increase production in a modular manner up to a maximum capacity of 1,500 tonnes per day. This, together with increased mine production and the elimination of Arian's reliance upon third-party toll millers, is expected to provide significantly increased operational control and efficiency, which should therefore translate into significantly reduced operational costs."
Arian will now kick on with refurbishment and transportation of the plant, which is to be reassembled at the company’s San Jose project, where the necessary land is being prepared for both the plant and the associated tailings. In addition, the company will continue to advance mine development to increase capacity to coincide with the modular construction of the mill.
The issued convertible loan notes will mature at a premium of 5% unless converted into Arian common shares before 29 August, 2014. The notes are convertible, subject to certain conditions, at a pre-share consolidation price of C$0.11, which equated to C$1.10 after the 10:1 consolidation of Arian shares announced on 30 August.
Shares in Arian Silver have been on a roll recently, rising 71% over the last month.