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SUNSHINE MINING AND SUNSHINE PRECIOUS METALS, ANNOUNCE TERMS FOR SILVER INDEXED BONDHOLDERS PLAN OF REORGANIZATION

SUNSHINE MINING AND SUNSHINE PRECIOUS METALS, ANNOUNCE TERMS FOR SILVER
 INDEXED BONDHOLDERS PLAN OF REORGANIZATION
 DALLAS, June 17 /PRNewswire/ -- Sunshine Mining Company (NYSE: SSC) and its subsidiary, Sunshine Precious Metals, Inc., announced today that the terms for Silver Indexed Bondholders of the Plan of Reorganization of Sunshine Precious Metals had been improved. The improvements resulted from negotiations with the Silver Indexed Bondholders Unofficial Advisory Committee, a group of five bondholders holding in the aggregate approximately $5.8 million (or 8 percent of the aggregate principal amount) of Silver Indexed Bonds.
 Principal among the changes to the Plan are that, upon confirmation of the Plan of Reorganization:
 -- Sunshine Precious Metals will grant a mortgage on the real property and facilities at the Sunshine Mine to secure the Bonds.
 -- Sunshine Mining will guarantee funding for Sunshine Precious Metals' operations through the end of 1993, up to a total of $5 million.
 -- Sunshine Mining will guarantee to make its stock available to fund interest payments on the New Bonds through the end of 1993.
 Sunshine Precious Metals is currently soliciting Bondholders in California to approve the Plan, having received sufficient Bondholder approval in the other states to confirm the Plan. The solicitation in California is scheduled to expire on July 3.
 -0- 6/17/92
 /EDITOR'S NOTE: Following is the Unofficial Advisory Committee's recommendation letter to Bondholders.
 TO: ALL SUNSHINE PRECIOUS METALS SILVER INDEXED BONDHOLDERS
 RECOMMENDATION FROM THE SILVER INDEXED
 BONDHOLDERS UNOFFICIAL ADVISORY COMMITTEE(A)
 Grace Brothers Ltd. Richard P. Howell IV
 Stonehill Investment Corp. David Bulbow
 J. Alexander Stevens
 The above-named bondholders have formed the Silver Indexed Bondholders Unofficial Advisory Committee. The Unofficial Advisory Committee members own in the aggregate approximately $5.8 million of Silver Indexed Bonds, representing approximately 8 percent of the total bonds outstanding. The Silver Indexed Bondholders Unofficial Advisory Committee members have voted for the Prepackaged Plan as proposed in the Prospectus dated Dec. 2, 1991.
 The Unofficial Advisory Committee members have negotiated with and obtained the agreement of Sunshine Precious Metals, Inc. ("SPMI") and its parent company, Sunshine Mining Company ("Sunshine"), to improve the consideration offered to the Bondholders and, as a result, the Plan has been improved as outlined in the enclosed supplement from SPMI.
 The Unofficial Advisory Committee believes that the Plan, particularly with the improvements now included by SPMI and Sunshine, is in the Bondholders' best interest, and provides the best opportunity for the Bondholders to recover the full value of their investment should silver prices recover.
 The surest means to guarantee a speedy exit by SPMI from the bankruptcy process without undue waste of resources is an affirmative vote for the Plan. In the opinion of the Silver Indexed Bondholders Unofficial Advisory Committee, it is in the interests of the Bondholders and of SPMI to have the fastest possible exit from the bankruptcy process. The Silver Indexed Bondholders Unofficial Advisory Committee therefore strongly encourages all Bondholders resident in California to respond quickly with an affirmative vote for the Plan.
 (A) This is not a committee appointed or organized by the United States Trustee pursuant to 11 USC Sec. 1102./
 /CONTACT: William W. Davis of Sunshine Mining, 800-542-6161/
 (SSC) CO: Sunshine Mining Company; Sunshine Precious Metals, Inc. ST: Texas IN: MNG SU: RCN


SH -- NY056 -- 1113 06/17/92 13:19 EDT
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Publication:PR Newswire
Date:Jun 17, 1992
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