Sunshine Mine expected to be in production in 2014
The Sunshine Silver Mines Corp. plans on beginning ore production at the Sunshine Mine in the second quarter of 2014, and concentrate production in late 2014, according to a filing with the Securities and Exchange Commission last month.
Sunshine Silver Mines is currently in a registration period prior to its initial public offering, or IPO. When the IPO comes online, the corporation intends to raise $250 million. The amended Form S-1 Registration Statement indicates the company is readying for a $250 million initial public offering.
"We expect that we will require additional funding at a later date to construct a refinery at the Sunshine Mine, to bring the Sunshine Mine into sustained commercial production and to develop a mine at the Los Gatos (Mexico) project," the Dec. 21 filing states.
The Sunshine Mine has significant on-site infrastructure, including an operational primary shaft, the Jewell, which is being modernized and upgraded, and a secondary shaft, the Silver Summit, which is being refurbished. There are currently 48 employees on site at the mine.
"Sunshine Silver believes that the significant historical production at the Sunshine Mine, combined with the recent and planned mine improvements, enhances the likelihood of operating success of the project relative to other silver development projects. However, significant time and capital investment will be required before the Sunshine Mine returns to production and the company anticipates that it will continue to incur operating costs without realizing any revenues at the Sunshine Mine until at least 2015," the document states.
Sunshine Silver Mines plans to complete a feasibility study at the Sunshine Mine to determine the costs to re-commission and operate the Sunshine Mine as a sustainable and efficient silver producer. Sunshine Silver expects the study will be completed within six months from completion of the IPO.
In May 2010, Sunshine Silver Mines Corp. acquired the majority of the operating facilities and equipment at the Sunshine Mine, including a lease on the Sunshine Mine that included a purchase option for title to the Sunshine Mine from Sterling. In July 2010, the company closed the purchase option to obtain title the Sunshine Mine and acquired the remaining operating facilities and equipment. The purchase price was $29,250,000 and included assumed liabilities.
Sunshine Silver Mines Corp. also acquired the right to purchase all of the issued and common stock of Sterling for $500. It did so in August 2011.
Sunshine Silver Mines also expects to expand its exploration program at Idaho properties outside the Sunshine Mine property, including Eastern Silver Belt and Falls Creek.