KELLOGG, Idaho, Aug. 29 ID-Sunshine-Precious
KELLOGG, Idaho, Aug. 29 /PRNewswire-FirstCall/ -- Today, Sunshine Precious
Metals, Inc. announces that Sterling Mining Company (OTC Bulletin Board: SRLM)
is in breach of the lease agreement (Sec. 13.6.3) by failing to " ... provide
evidence [of annual advance maintenance fee] on/or before the 15th day of
August ... "
"The agreement clearly specifies what is required, and since Sterling has
failed to timely provide the proper evidence of payment it appears the mine is
in danger of falling out of compliance with federal regulations," said Andrew
Grundman spokesman for Sunshine. Mr. Grundman further went on to say
"Sunshine's representatives are currently investigating what we believe are
additional compliance issues with Federal and State law, as well as what may
well be additional material breaches."
In a recent letter to Sterling Mining Company and its attorney, Michael K.
Branstetter, Sunshine clearly outlines a course of action needed to bring this
project back into Federal and State compliance. Among many key issues raised
in the letter, lack of access to project site for inspection, no evidence of
BLM assessment payments or adequate insurance coverage. Additionally recent
SEC filings concerning an alarming number of high interest loans, raises
questions about Sterling's ability to satisfy the lessor's demands and
continue operations.
Similarly, Sterling Mining Company has been issued a mechanics lien from
Miller Sales and Engineering, Inc for failure to pay Miller for services
rendered. This lien has encumbered property owned by Sunshine that Sterling
only leases. Upon hearing about the mechanics lien against Sterling Mining
Company, Mr. Grundman said, "Sterling has failed to protect our property and
this raises concerns about their ability to pay contractors and their solvency
to maintain the infrastructure of the mine."
For additional information please contact Andrew Grundman, Esq. at
(208) 215-8475 or info@sunshinemine.com.
SOURCE Sunshine Precious Metals, Inc.
