Starcore International Mines Ltd. ("Starcore" or the "Company") announces that in 2013 it will focus on increasing shareholder value through exploration and development at its wholly-owned San Martin gold and silver mine in Queretaro, Mexico.
In order to achieve this goal, Starcore has scheduled an enhanced exploration program to commence in February 2013, comprised of 5000 meters of drilling to unlock the potential at the San Martin gold-silver mine. To facilitate this objective for 2013, the Company has renegotiated its loan facility with Sprott Resource Lending Corp. ("Sprott Lending") whereby Starcore will not be required to make any further principal payments on its outstanding loan with Sprott Lending until October 31, 2013. (See news release of May 10, 2012.) The Company and Sprott Lending have amended the terms of the outstanding credit facility to allow Starcore the flexibility to make one balloon payment by October 31, 2013, thus enabling the Company to immediately allocate surplus revenue to exploration.
Starcore is aggressively pursuing its exploration activities to open up new structures with the expectation that this will increase its reserves. "The loan payment holiday with Sprott Lending will fuel our exploration efforts in the New Year and we expect the drilling results to increase shareholder value in a very attractive gold market," said Robert Eadie, Executive Chairman and CEO of the Company.
As consideration for amending the loan agreement, Sprott Lending will receive, subject to TSX approval, 300,000 shares of the Company.
Source: http://www.starcore.com/