Aurcana/Shafter Mine $50 million loan delay

The Aurcana Corporation, owner of the Shafter Mine in Presidio County, continues to work with RK Mine Finance in closing an unsecured 3-year loan facility of $50 million and silver Offtake Agreement for the silver produced at the Shafter mine. The closing, subject to execution of definitive documentation and approval from RK Mine Finance’s Investment Committee, initially expected to occur in July 2013 is now targeted for completion in August 2013.

No reason was given for the delay.

Regarding a pending lawsuit the company said, “A class action has been filed in the Ontario Superior Court of Justice naming the Company and certain officers of the Company as defendants. The plaintiff’s Statement of Claim asserts claims based on alleged misrepresentations relating to levels of production at the Shafter mine. The plaintiff purports to bring suit on behalf of all purchasers of the Company’s publicly traded securities between December 14, 2012 to and including April 11, 2013.

‘The Company considers the allegations to be entirely without merit and will vigorously defend itself in this action.”