Holmer Silver Deposit in Cuba now at Production Financing Stage

May 5, 2009 - PRLog -- Holmer Silver Company Ltd., through its 100% owned subsidiary Holmer Gold Mines Inc., is pleased to announce that the Loma Hierro Silver deposit has moved through all of the exploration, development and permitting stages and is now ready for production financing to continue the construction of the first open-pit silver mine in Cuba. Over the next several months, Holmer, a private company, will begin meeting with a number of potential funding sources for either debt financing, equity financing or a combination of both.

Holmer Gold Mines Inc.was one of the first junior mining companies to enter Cuba in the early 1990’s and during that time has spent over US$5.5 million on two discoveries- a 10 million+ oz high-grade silver deposit in western Cuba and a 2 million+ ton polymetallic deposit in central Cuba.. The consistency of Holmer’s continuing Cuban presence and commitment over that 16 year period of time, in a complex business environment with significant barriers to entry, has enabled the company to move this deposit into the final production stage. This first project will be held through a 50% joint-venture interest in Plata Cuba S.A. (the other 50% is held by GeoMinera, a Cuban state company).

It should be noted that this 16 year commitment to Cuba also allows Holmer to be able to act as an effective platform for accessibility to a number of other resource exploration areas within Cuba. Holmer operates through a long established representation office in Cuba and is registered at the Cuban Chamber of Commerce. It has a very experienced and capable management team in place which has a longstanding and deep understanding of both the technical issues faced in the sector and the overall business environment and climate. Strong relationships have been maintained for the 16 years with all levels of the Cuban political system and business community. It is noteworthy that the full joint-venture agreement for this project, signed in December 2006, was one of very few new agreements to be reached during the past seven years.

A recently completed independent technical study (N43-101) confirmed that the silver mine is economically robust. The cash flow has been structured to repay any debt financing within 14 months of starting production (30 months total) at a silver price of US$12 per ounce. Holmer’s net cash flow ranges from $12 million @ US$12 per ounce to $22 million @ US $18 per ounce. There is a distinct possibility that there will be a substantial increase in revenue as a result of higher ore grade being realized during the actual mining process as well as the extension of the mine life through development of additional known zones nearby.

Holmer has noted the recent overtures from both the Cuban Government and the new Administration in Washington as well as the increased requests from numerous other governments for the US to remove their Embargo. Holmer looks forward to an increased opening between the two countries.

For any funding sources interested in discussing a potential involvement, a short corporate presentation has been prepared and is available from the President of Holmer, Dr. Sethu Raman - raman@holmergoldmines.com or Cuban Investments – info@cubaninvestments.com