Aurcana Corporation ("Aurcana" or the "Company") today announced that subject to final acceptance from the TSX Venture Exchange, the Company and Silver Standard Resources Inc. ("Silver Standard") have agreed to restructure the terms of the $10,000,000 convertible debenture (the "Debenture") which the Company issued to Silver Standard on July 15, 2008. The Debenture has a three year term, and bears interest at a rate of 1.5% in the first year, and 4% thereafter.
Under the terms of the amended Convertible Debenture:
- the maturity date of the Debenture is extended form July 15, 2011 to July 15, 2012;
- the Company has agreed to repay an aggregate of $7,000,000 of the principal owing under the Debenture on or before July 15, 2011;
- the remaining $3,000,000 principal balance will be repaid in equal quarterly instalments commencing on October 15, 2011;
- the rate of interest on the principal outstanding after July 15, 2011 will be 9% per annum; and
- the Company may prepay the Debenture at any time prior to maturity without penalty.
About Aurcana Corporation:
Aurcana is committed to become a mid-tier silver producer. Annualized pure silver production is on schedule to exceed 5 million ounces (6.0 million ounces silver equivalent) by year 2012.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President and C.E.O.
For further information, visit the website at www.aurcana.com:
P: (604) 331-9333
TF: (866) 532-9333
F: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.