SNS Silver Clarifies Status of Sunshine Mine in Idaho

SNS Silver Clarifies Status of Sunshine Mine in Idaho

SNS Silver Corp., an exploration mining company, whose assets include a number of near term production projects in geopolitically secure Idaho, USA remains confident of its long-term goal to operate the legendary Sunshine silver mine near Kellogg, Idaho, adjacent to SNS Silver’s Crescent silver mine. A lease of the mine held by Sunshine’s former operator, Sterling Mining Co., was held re-assumable pursuant to applicable bankruptcy law on May 15, despite Sterling’s vacation of the property on February 19. A May 27 hearing is now scheduled to determine Sterling’s ability to cure defaults under the lease and reimburse SNS costs expended for the care and maintenance of the mine.

“SNS signed a 20 year lease with SPMI following the Sterling abandonment which includes all surface rights to the mine and the tailings pipe that stretches some 2 miles underground that is needed to de-water the mine, along with several other mining claims and access to all other assets that are key components to the mine in order to move the mine into production. We enjoy a great working relationship with SPMI and believe that combined operations at the Crescent and Sunshine mines will be of significant benefit to the Coeur d’Alene Mining District’s people and its silver-producing industry,” Mr. Greenway added.

SPMI President Robert Mori said, “Sterling did not, back in February, nor does it have now, the wherewithal to cure the numerous and accumulating defaults on its lease. We took the mine back from them and waived the notice period, to which we were entitled, as a courtesy to Sterling and at their request.”

“In the meantime, we will vigorously assert our property rights under all applicable laws to make sure the Sunshine mine remains in competent hands, and that means SNS Silver,” Mr. Mori concluded.

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