August 2nd, 2007
Arian Silver Corporation (“Arian” or the “Company”) announces that it has provisionally placed 5,454,500 units of the Company (each, a “Unit”) at Cdn$0.55 per Unit to raise Cdn$2,999,975 by way of a non-brokered private placement which it plans to close later today. The placement is also conditional upon receipt of TSX Venture Exchange approval.
Each Unit consists of one common share of the Company and one-half of a common share purchase warrant. Each whole warrant (each, a “Warrant”) will entitle the holder thereof to acquire one common share (each, a “Warrant Share”) for a period of 2 years from the closing of the placement at an exercise price of Cdn$0.65 per Warrant Share, provided that in the event that the closing price of the common shares of the Company on the TSX Venture Exchange exceeds Cdn$1.40 for any period of ten (10) consecutive trading days, the Company may accelerate the expiry date of the Warrants by providing notice to the Warrant holders, in which case, all unexercised Warrants will expire thirty (30) days after such notice.
The proceeds of the placement will be used to fund work programmes on the Company’s projects in Mexico as well as for general corporate purposes.
Jim Williams today commented: “Arian’s on-going work programme in Mexico continues with a 3,000-metre core drilling programme completed at the Calicanto Project in April this year; we are more than 65% through a 5,000-metre core drilling programme at our San Jose Property, and we are more than 60% through a 3,000-metre core drilling programme at our Tepal Property. The drill programmes mentioned here are Phase-1 and we anticipate starting our Phase-2 programmes early in the autumn.”
“The drilling results from Calicanto, which we have now evaluated, returned bonanza-grade silver (and gold) mineralisation over true widths in excess of 4 metres, which may render the project amenable to mechanised mining, such as Load-Haul-Dump (LHD). We are concurrently advancing two declines along the Calicanto and San Buenaventura vein systems and both these are now approximately 100 metres in. The run-of-mine (ROM) material from these declines, which now totals some 3,000 tonnes, will be bulk treated through a mill near Zacatecas in the very near future.”
“The on-going drill programme at San Jose is proving silver mineralisation nearly 3 kilometres out on the western extension of the San Jose Mine. In addition to silver mineralisation we are finding high zinc and lead grades, which if consistent, could significantly increase the economic potential of this project.”
“The Tepal drilling is advancing and we are still in the waiting process for our first complete suite of assay results from the laboratory. Visually the core looks very interesting and in due course we hope to at least confirm the historic resource comprising an in-situ metal content of 1.2 million ounces of gold and 432 million pounds of copper.”
For further information please contact:
Jim Williams - CEO
Graham Potts - Corporate Secretary
Arian Silver Corporation
+44 (0)20 7529 7511
+44 (0)20 7851 7480
Grant Thornton Corporate Finance
+44 (0)207 385 5100
Daniel Brooks / Tom Beattie
Haywood Securities (UK) Limited
+44 (0) 207 031 8000
Vanguard Shareholder Solutions
+1 (604) 608 0824
Toll free: 1866 898 0825
Arian Silver Corporation is a silver exploration and development company listed on London’s AIM and “PLUS”, on Toronto’s TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian is active in Mexico, the world’s largest silver producing country. The Company’s main projects are the Calicanto and San Jose projects in Zacatecas State and the Tepal project in Michoacán State. Part of Arian’s forward-looking strategy lies in the envisaged use of large scale mechanised mining techniques over wider mineralised structures, which reduces the overall operating cost per ounce of silver, and to build up National Instrument 43-101 compliant resources.
Arian was founded by Jim Williams, Chief Executive Officer, and Tony Williams, Chairman, who together have over 50 years experience in exploration, project construction and mining worldwide. Arian is supported by the Dragon Group in London, and the Endeavour Group in Canada.
Further information can be found by visiting Arian’s website: www.ariansilver.com or the Company’s publicly available records at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding exploration results, potential mineralization, potential mineral resources, and the Company’s exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that future exploration results will not be consistent with the Company’s expectations, uncertainties relating to the availability and costs of financing needed in the future, changes in commodity prices, changes in equity markets, political developments in Mexico, changes to regulations affecting the Company’s activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting exploration results and other geological data, and the other risks involved in the mineral exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.