July 20, 2011 in Idaho

Sunshine files for IPO

Company says it will study reopening mine
By The Spokesman-Review
 
Lucrative history

The Sunshine Mine was one of North America’s richest silver strikes, producing more than 360 million ounces of silver during 125 years of operation. The underground mine employed more than 200 people before it closed in 2001.

The mine reopened in 2007, but shut down amid financial troubles.

The owner of the historic Sunshine Mine near Kellogg, plans to raise up to $250 million through an initial public offering of its shares.

Sunshine Silver Mines Corp. said it would use part of the money to study the cost of reopening the mine, according to company documents filed with the U.S. Securities and Exchange Commission. Some of the money would also be spent on the company’s Mexican silver properties.

Sunshine Silver will apply to trade on the New York Stock Exchange under the symbol AGS.

Sunshine Silver is part of the Electrum Group of Companies of New York, which purchased the defunct Sunshine Mine last year through a bankruptcy sale. Electrum is a worldwide investor in silver and gold mines.

According to SEC documents, Sunshine Silver officials plan to do a pre-feasiblity study to determine the cost of putting the mine back into operation, which would include substantial investments in equipment. No timeline was given for the study.


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