Minco and Sterling announces proposed business combination
by Jo Black

Minco Silver Corporation, a TSX listed company focusing on the acquisition and development of silver dominant projects, and Sterling Mining Company (Sterling) have signed a letter of agreement whereby Minco Silver will acquire 100% of the issued and outstanding shares of Sterling.
The transaction will result in Minco Silver controlling two world class silver deposits including the Fuwan Silver property in China and the Sunshine Mine in Idaho, USA.
Minco Silver has offered 0.51 of a share for each one Sterling share which equates to an offer of US$1.58 per Sterling share based on Minco Silver’s July 21, 2008 closing price. The offer values Sterling at US$62.3 million.
Upon completion of the transaction, the combined company will have approximately 52 million common shares issued and outstanding, plus options and warrants. Minco Silver shareholders will own 61% and former Sterling shareholders will own 39% of the combined company.
Minco Silver has extended a US$15 million line of credit to Sterling, of which US$5 million is to be funded immediately, bearing 10% annual interest compounded monthly, to be used for continued operations at the Sunshine Mine.
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