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Thu Apr 29, 2004
Pan American Repays Project Financings
(all amounts in US$ unless otherwise stated)
Vancouver, Canada - Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is pleased to report that it is fully prepaying two project related financings totaling $13 million. To reduce future interest expenses, Pan American has repaid the $3.5 million loan relating to the initial development of the Huaron mine and has notified the International Finance Corporation of its intention to prepay the $9.5 million construction loan incurred to complete the expansion of the La Colorada mine last year. The early repayment of these loans will save Pan American approximately $500,000 in annual net interest expense. The loan prepayments are being funded from existing cash balances.
According to the Company's Chairman and CEO, Ross Beaty, "The early conversion of the 5.25% convertible debentures due July 31, 2009 and the prepayment of these modest project loans clearly improves our financial position. We are now almost debt free with $120 million in cash, sufficient to purchase the Morococha mine in Peru, build the Alamo Dorado project in Mexico and complete the expansion of our Huaron mine in Peru. In addition, we have two more projects in feasibility. All our mines are now generating positive cash flow, which will fuel continued growth. Pan American is in the best financial condition it has ever been in while we continue to mature as the world's pre-eminent primary silver producer."
-end-
For Further Information Contact:
Brenda Radies, VP Corporate Relations
(604) 684-1175
www.panamericansilver.com
CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American is active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F. |
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