Sterling Mining Company Announces Successful Auction of Stock and Assets
COEUR D'ALENE, Idaho, April 22 /PRNewswire-FirstCall/ -- Sterling Mining Company (Pink Sheets: SRLMQ) announces that Court papers will be filed shortly seeking to approve a successful $24.0 million bid for the assets and stock of Sterling Mining Company, the operator of the historic Sunshine Mine. Sterling Mining Company has been reorganizing for the last year under Chapter 11 in the United States Bankruptcy Court for the District of Idaho.
The successful bidder—with a cash price of $24.0 million—was Silver Opportunity Partners LLC.
Michael Williams, President of Silver Opportunity Partners LLC commented on the successful bid: "Silver Opportunity Partners is very pleased to be the successful bidder for the Sunshine Mine. We not only have great respect for the historic significance of the Sunshine Mine but also share with the community a keen regard for the mine's importance to the economic future of the region. As such we intend to honor the Sunshine Mine's legacy with a strong commitment to its rehabilitation in a manner that is both environmentally sensitive and developmentally sustainable. In that effort, we look forward to working constructively and proactively with the Coeur d'Alene community upon approval of the legal process by the US Bankruptcy Court for the District of Idaho."
Sterling Mining Company believes that the sale to Silver Opportunity Partners LLC will be of great benefit to the bankruptcy estate, as well as to the entire Silver Valley.
The backup bidder is Minco Silver Corporation (MSV.TO). Minco is a Canadian silver mining firm, which is a creditor of Sterling Mining Company.
Also participating in the auction was Alberta Star Development Corp. (TSXV-ASX), another Canadian firm.
"We will be seeking approval of the sale process on May 3, 2010, in the Bankruptcy Court for the District of Idaho, and both Sterling Mining Company and Silver Opportunity Partners LLC hope to close the transaction shortly thereafter," stated Robert Higdem, CEO of Sterling Mining Company. Mr. Higdem also noted that the auction justified the faith of many investors and employees of Sterling Mining Company who have held on during the very difficult reorganization process. It is anticipated that through the bankruptcy reorganization process, distribution to Sterling Mining Company's creditors, and possibly distribution to shareholders, could occur before the end of 2010.
SOURCE Sterling Mining Company