Perilya to pay $US55m to end silver sale
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Reuters
SHANGHAI -- Zinc miner Perilya Ltd will pay two clients $US55 million ($A68.8 million) in cash to end a contracted silver sale, and retain ownership of 11.2 million ounces of silver as prices rise, its Chinese shareholder said.
Shenzhen Zhongjin Lingnan Nonfemet , which owns a 50.1 per cent stake in Perilya Mining, said $US50 million ($A62.6 million) of the compensation would come from loans from the Bank of China, with Zhongjin's guarantee.
Perilya would pay the remaining $US5 million ($A6.26 million) from its own cash supply, Zhongjin said.
Zhongjin said the deal would reinforce Perilya's profitability as international silver prices have almost doubled since August 2005, when Perilya contracted to sell a total of 17.2 million ounces of silver.
About six million ounces had already been delivered.
Trade in Perilya shares was suspended on Wednesday, pending a company announcement.
from business spectator
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