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Avino Silver & Gold (TSXV: ASM) (NYSE MKT: ASM) contracts to presell 24 months of concentrate production from Avino Mine to Samsung

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Avino Silver & Gold, symbol ASM on both the TSX Venture Exchange and the NYSE MKT, announced a concentrates prepayment agreement with Samsung C&T Corporation. Samsung C&T Corporation, formerly known as Samsung Corporation, is the original company of the Samsung Group, with a history going back to 1938. It is South Korea’s largest conglomerate with interests in construction, electronics, chemicals, finance and numerous other fields.

Additional Information:

Company: Avino Silver & Gold
Website: http://www.avino.com/s/Home.asp
Stock Symbol: TSXV: ASM
Date Published: Jul 9, 2015
Transcript: Available

Video Transcript:

I’m Amanda Rose Schellenberg for InvestmentPitch.com

Avino Silver & Gold, symbol ASM on both the TSX Venture Exchange and the NYSE MKT, announced a concentrates prepayment agreement with Samsung C&T Corporation. Samsung C&T Corporation, formerly known as Samsung Corporation, is the original company of the Samsung Group, with a history going back to 1938.

It is South Korea’s largest conglomerate with interests in construction, electronics, chemicals, finance and numerous other fields.

Under the terms of the agreement, Avino will sell all the concentrates from the Avino Mine in Mexico, on an exclusive basis to Samsung, for a period of 24 months.

This agreement does not include concentrates from Avino’s nearby San Gonzalo Mine.

US$10 million will be made available to Avino as a single drawdown, against future shipments of concentrates.

Samsung will pay the prevailing metals prices for the silver, copper and gold content, less treatment, refining, shipping and insurance charges.

Interest will be charged of the outstanding prepayment balance at a rate of LIBOR plus 4.75%, excluding a fee of US$125,000 for Samsung’s due diligence costs.

Avino has pledged its approximately 28.5 million shares of Bralorne Gold Mines, which owns the Bralorne Mine Property in BC, as collateral.

David Wolfin, President & CEO stated: “We are very pleased to have this business relationship with one of the world's largest corporations. This agreement marks a major milestone for Avino. This low cost money ensures that Avino will have sufficient capital to further advance operations and continue with its growth strategy without dilution to shareholders. The Facility demonstrates Samsung’s support for Avino, and we expect Samsung will be a key contributor to our growing success.”

Avino will use the funds for mining equipment and to optimize development of its projects in order to increase productivity, as well as for improvements to its tailings impoundment facilities, and general working capital.

Avino, located in the Durango region of North Central Mexico, is one of the industry's purest silver producers.

For the quarter ended March 31, 2015 the company reported that silver equivalent production had increased 102% to 652,620 ounces compared to 323,200 ounces in the first quarter of 2014.

Avino is trading at CDN$1.34 and with 36.4 million shares outstanding, the company is capitalized at $48.8 million.

For more information please visit the company’s website www.avino.com, or contact David Wolfin, President & CEO, at 604-682-3701 or email ir@avino.com.

I’m Amanda Rose Schellenberg for InvestmentPitch.com
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