Apogee Silver Responds to Reports of Possible "Recovery" of Certain Bolivian Mines
TORONTO, ONTARIO, Apr 15, 2011 (Marketwire via COMTEX News Network) --
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Apogee Silver Ltd. (TSX VENTURE:APE) ("Apogee" or the "Company") wishes to respond to recent reports that, subject to union demands, certain silver, zinc, lead and tin mines currently operated by foreign companies may be "recovered" by the Bolivian state. A spokesman for COMIBOL, the Corp. Minera de Bolivia, was quoted as saying the government may issue a decree on May 1, 2011 in this regard.
Apogee understands that several unions operating at foreign controlled mines have communicated with the government that they oppose any "recovery" of such mines by the government. Apogee believes that remuneration and employment standards are generally high at these operations.
The Pulacayo mine, in the Potosi region of southwest Bolivia, is Apogee's principal asset. Apogee and the Pulacayo Mining Cooperative (which is part of FENCOMIN, the national federation of mining cooperatives) jointly hold a renewable lease until 2025 of the concessions from COMIBOL, which relationship is defined in a joint venture agreement executed in 2002. The agreement stipulates that Apogee is the financing and managing partner. In addition, a royalty is to be paid to the Pulacayo Mining Cooperative and COMIBOL under the joint venture and lease agreements respectively.
Apogee does not presently have a union at the Pulacayo mine and the Company believes it enjoys significant support from the local community, as well as the Pulacayo Mining Cooperative.
The Company does not believe at this time that it will be impacted by any "recoveries" that may or may not occur.
Apogee is continuing with its on going drilling program at Pulacayo where it presently has four diamond drills operating. As announced on April 6, 2011, Apogee expects to use the net proceeds from the bought deal private placement offering announced on such date to fund further exploration and development activities at the Pulacayo deposit, as well as to advance the Pulacayo project towards production and for general corporate purposes.
AI
