Vancouver, B.C. - Starcore International Mines Ltd. (the “Company”) is pleased to announce that after payment of the final forward sales contract for the sale of gold at $731 on January 31, 2013, the Company expects to be in a position of generating significant net cash flow. At such point, the Board of Directors anticipates that it will use its surplus funds to expand its exploration and development program to increase reserves at San Martin Mine. The Board also intends to mark the end of its hedge obligations to Investec Bank (U.K.) Limited by declaring dividends to its shareholders in 2013.
“Our shareholders have been extremely patient and supportive of our efforts over the last five years,” said Robert Eadie, CEO and Interim President. “Once the hedge is gone, we hope to reward their support and loyalty by declaring dividends for the first time since we acquired the San Martin Mine - and we are expecting it to be a practice that we will be continuing for many more years to come.”
Any dividends to be declared by the Company would be subject to regulatory approval.
For more information on the Company visit our website at www.starcore.com.
ON BEHALF OF STARCORE INTERNATIONAL
Signed “Robert Eadie”
Robert Eadie, CEO & Interim President
FOR FURTHER INFORMATION PLEASE CONTACT: Robert Eadie
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. When used in this document, words such as “anticipate”, “expect”, “estimate,” “intend”, “hope”, “will”, “likely”, “goal” and similar expressions are intended to identify such forward-looking statements. Such statements include without limitation: statements regarding expected future cash flows upon completion of all hedge payments, the proposed uses of future cash flows; and the payment of dividends upon completion of all hedge payments. Such forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The assumptions made by the Company in preparing the forward looking statements contained in this news release, which may prove to be incorrect, include, but are not limited to: that production meets expectations; that the Company’s current estimates of mineral reserves, mineral resources, mineral grades and mineral recovery are accurate; that the Company identifies additional reserves through drilling; that there are no significant disruptions affecting operations; that the Company does not change its development and exploration plans; that prices for gold and silver remain consistent with the Company’s expectations; and that prices for key mining supplies, including labour costs and consumables, remain consistent with the Company’s current expectations. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, delays in exploration and development plans; mining risks, including unexpected formations and cave-ins, which delay operations or prevent extraction of material; risks associated with foreign operations; governmental and environmental regulation; the sufficiency of future cash flows to support the payment of dividends; that future free cash flow, if it occurs, is not required for other corporate purposes or the Board of Directors determines that future cash flow be used for other corporate objectives; and general economic, market or business conditions. Although Starcore believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Starcore, investors should review Starcore’s Annual Information Form and annual Management Discussion & Analysis available on the SEDAR website at www.sedar.com. Starcore does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.