Silver Mountain Mines Provides Update in Letter to Shareholders
Calgary, Alberta--(Newsfile Corp. - May 19, 2015) - Silver Mountain Mines Inc. (TSXV: SMM) ("Silver Mountain" or the "Company") is pleased to provide an update to its shareholders on the Company's ongoing business matters.
This letter provides a brief update and comments on the outlook of markets and conditions pertinent to Silver Mountain Mines. During the past few years, the mining industry has been in a tumultuous downturn with lowered industry valuations, minimal capital market activity and negative commodities outlooks, often resulting in mining companies shedding assets to address balance sheet issues while minimizing or ceasing work programs altogether. Many economic conditions/stimulus are at extremes with the US$ at relative highs, interest rates at significant lows, and petro dollar challenges creating unparalleled instabilities in global markets. Many commodities are trending at or below 2011 price levels which in turn makes it difficult for junior companies to access capital and for investors to be assured of the survival of companies.
A recent article by Tony Simon of Venture Capital Markets Association suggests that there are about 600 "zombie" junior resource companies on the TSX Venture Exchange with combined negative working capital of greater than $2 billion. Allowing some of these companies to die, would provide the exchange with a solid foundation in support to the stronger companies. This pragmatic approach should facilitate the flow of capital into companies with prudent management and real assets. SMM is not a "zombie" company. We are active in the field, continuing data interpretation and drill program planning. We are fully up to date in all reporting, all our fees are paid, and we have working capital in excess of $700,000.
At SMM, we are presently interpreting all the drill results and associated information from 2009-2014 programs with leading industry companies and senior mining officials to further our understanding of the mineralization, the signature of the geology throughout our property and the potential of a significant deposit. We anticipate that the results should be compiled by the end of our second quarter and we anticipate positive results from our analysis. The outcome from this analysis is expected to better define the size, depth and location of the mineralized areas and further define specific drill targets that we anticipate will increase our tonnage.
As the Ptarmigan project moves forward it's important to remember that we, have drilled less than 5% of what we believe are resource potential targets. SMM has excellent infrastructure throughout our 9,900 hectares of contiguous mineral rights which contains mineralized bodies of precious and base metals. We believe there is a strong likelihood that the property hosts a significantly larger resource at depth which remains untested.
As part of our overall strategy to add value to your Company, the Silver Mountain Mines Inc. leadership team continues to review and assess new opportunities. As part of this exercise, we have conducted an extensive evaluation of strategic alternatives to create greater shareholder value. The Company is currently analyzing several potential opportunities that came out of our strategic discussions in response to the market condition cited above.
Such strategic alternatives include the purchase of assets, the participation in other assets (either in one transaction or in a combination of transactions), a merger, recapitalization, amalgamation or any combination thereof. This review process is on-going and new opportunities are constantly emerging. There are no assurances that a transaction will be undertaken or if a transaction is undertaken, as to its terms or timing. However, should one or more opportunities/transactions prove to be attractive, we will advise the market with respect to future plans and any related actions required thereto.
I continue to believe the Company is very well positioned especially when compared to many of its peers in the junior exploration space. Through these tough markets, Silver Mountain Mines remains a well-managed public exploration company with strong financial discipline guiding us through these market conditions. We are current with all reporting and listing requirements and believe that we are also undervalued relative to our peers and the assets we own 100%. SMM is debt free, working capital in excess of $700,000 and with direct expenditures historically of over 70% into the Ptarmigan basin, where we have significantly increase our asset value through all of our successful programs.
I would like to take this opportunity to thank our shareholders for their continued support and patience as we continue to realize value at Silver Mountain Mines and create additional value through new opportunities and new discoveries.
I invite you to visit our website at www.silvermountainmines.com for more information and should you have any questions or concerns, please do not hesitate to call me directly at, (403)-229-9140.
Yours truly,
Steve Konopelky, President & CEO
About Silver Mountain Mines Inc. (TSXV: SMM)
Silver Mountain Mines Inc. is a Canadian based exploration and development company with 100% ownership of a 10,028 hectare property centered on the historical silver rich Ptarmigan Mine in south eastern, British Columbia. The property hosts two styles of mineralization: silver rich, high-grade polymetallic epithermal veins and manto style massive / semi-massive sulphide mineralization.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions and factors that could cause actual results to differ materially from those in forward looking statements Silver Mountain Mines Inc. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Neither the TSX-Venture Exchange nor its Regulation Services Provider, as per the term defined in the policies of the TSX Venture Exchange, accepts responsibility for the adequacy or accuracy of the release.
ON BEHALF OF THE BOARD
"Signed"
Steve Konopelky
President and CEO