Minco Silver Announces Court Ruling on Sunshine Mine Lease
Minco Silver Corporation announces that on May 15, 2009 the US Bankruptcy Court, District of Idaho released its Memorandum of Decision on Sterling Mining Company’s motion to assume and cure the lease of the Sunshine Mine of June 6, 2003 between Sterling and Sunshine Precious Metals, Inc. (“SPMI”) and a motion to approve a post petition financing proposed by Minco Silver.
The Court ruled in favor of Sterling that the Sunshine Lease was not terminated pre-bankruptcy and granted Sterling the right to assume and cure the Sunshine Lease and reacquire the Sunshine Mine.
The Court approved the Company’s proposal to provide Sterling with up to US$1,000,000 secured post petition financing under a credit facility to cure any defaults of the Sunshine Lease as ordered by the Court and to meet administration expenses and expenses associated with the continued care and maintenance of the Sunshine Mine.
Minco Silver’s Chairman and CEO, Dr. Ken Cai, commented: “It has been a long road, we are very happy with the Court’s decision. The Sunshine Lease is a major and valuable asset of Sterling and is Minco Silver’s main security for the US$5 million Loan provided to Sterling. We are committed to protecting our investment in Sterling and our shareholder value.”