The Company wishes to retract certain statements contained in previously issued news releases or posted on its website at www.silverado.com. In those instances where the Company has retracted statements contained in its previous disclosures, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
The Company retracts the statements contained in its previously issued news release dated
The Company retracts all statements contained in its previously issued news releases dated
The Company retracts the statements contained in its previously issued news release dated
The Company retracts the statements contained in its previously issued news release dated
The Company retracts the statements contained in its investor relations fact sheet dated
The Company has engaged
LOW-RANK COAL WATER FUEL PROJECT
Status of the Memorandum of Understanding
There have been no developments in connection with the Memorandum of Understanding (the "MOU") dated
Current Developments
The Company has developed internal preliminary commercial models based on various assumptions and estimates for the construction of commercial production facilities and the cost of producing low-rank coal water fuel using locally-mined coal purchased from third parties. The preliminary results of the commercial models vary significantly depending upon, among other things, coal quality, coal price and location of the proposed commercial facility. The escalating cost of steel, equipment, machinery, labour and other consumables are also factors that will impact the actual cost of producing low-rank coal water fuel if the Company proceeds with the construction of a commercial facility.
The Company has in the past disclosed non-independent estimated production costs per barrel of oil equivalent low-rank coal water fuel, which were based on a number of assumptions and estimates that may not reflect current or actual values. From a market demand perspective, a barrel of oil equivalent low-rank coal water fuel does not yield a price equal to a barrel of crude oil. In addition, there is no current identifiable market for the Company's proposed low-rank coal water fuel and there is no assurance that a market will develop. The estimated production costs of low-rank coal water fuel are therefore speculative and based on commercial models that are conceptual in nature, not equivalent to a full independent financial analysis and not based on a detailed plant design. As a result, readers are cautioned not to rely on the Company's past disclosure of estimated production costs of low-rank coal water fuel.
Future Plans
Whether the Company proceeds with the construction of a commercial production facility is dependent on the completion of a successful financial analysis with respect to a particular location and utilizing a particular type of coal as an input. With respect to
Upon the successful completion of an independent financial analysis, the Company may determine that construction of a commercial production facility would be economically viable. However, proceeding with the construction of such a facility will be dependent on several factors including (i) determining the size and location of the facility, (ii) acquiring land and transportation infrastructure, (iii) obtaining necessary permitting, (iv) obtaining a long term supply agreement for coal, and (v) obtaining sufficient financing. The Company's business venture into low-rank coal water fuel is at a very early stage and is subject to a high degree of risks. There is no assurance that the Company will succeed in obtaining government or private funding for this project or that a commercial facility based on a particular financial analysis will be constructed if at all. The Company may seek other shareholder enhancing initiatives including joint ventures, divestiture and licencing/royalty arrangements.
AMENDMENT TO EXERCISE PRICE OF WARRANTS
In
The amendments to the exercise price of the share purchase warrants were initiated by the Company in response to the Company's adverse financial condition. The Company's liquidity and cash flow concerns raised substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern was dependent on the Company's ability to raise additional capital. As a result, in order to provide an incentive to certain existing warrant holders to exercise their warrants immediately, the Company reduced the exercise price of certain of its outstanding common share purchase warrants to below the market price at such time. Based on the Company's adverse financial condition and its limited sources of capital raising at the time, the Company determined, on each occasion, that it was in the best interests of the Company to reduce the exercise price of the warrants. The Company's operations have been historically funded primarily from sales of its shares.
CEASE TRADE ORDER
The Company is working in cooperation with the BCSC to file the required documents and to seek revocation of the Cease Trade Order issued on
About the Company
The Company is an exploration stage company focused on the exploration of gold properties, with some past production, and the development of new environmentally friendly low-rank coal water fuel technology. The Company has gold properties located throughout
Forward-Looking Statements
This news release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of test mining activities and other factors. Forward-looking statements are made, without limitation, in relation to operating plans, property exploration activities, including test mining activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", or "continue", and the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks detailed in the Company's filings with the Canadian Securities Authorities and the US SEC. These factors may cause the Company's actual results to differ materially from any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
SOURCE Silverado Gold Mines Ltd.