Sunshine Proceeds With Stock Transfer

Sunshine Mining and Refining Co. Tuesday took another step toward converting its preferred stock into common stock by filing with the Securities and Exchange Commission to complete the transfer.

Sunshine has 7.2 million outstanding shares of preferred stock, and the company has not paid a dividend on the shares since the early 1990s.

In order to avoid litigation from the owners of the preferred stock, Sunshine made a deal late last year with the largest holders of the stock to convert their holdings into common stock.

Under the proposed plan, each share of preferred stock will be converted into six shares of Sunshine common stock. Each holder also will receive warrants for two common shares of stock at $1.92 a share, or .9 of a common share, the company said.

Both preferred and common shareholders will vote on the plan at a special meeting March 29. If approved, the transfer will occur that day. Sunshine’s stock finished Tuesday unchanged at $1.75 a share.

If Sunshine’s closing common stock price for 120 days after March 29 averages less than $1.75 a share, additional common shares will be given to preferred shareholders.

Boise-based Sunshine owns and operates the Sunshine Silver Mine in Idaho’s Silver Valley.

, DataTimes