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SUNSHINE MINING ANNOUNCES EXCHANGE OFFERS EFFECTIVE

 SUNSHINE MINING ANNOUNCES EXCHANGE OFFERS EFFECTIVE
 DALLAS, Dec. 3 /PRNewswire/ -- Sunshine Mining Company (NYSE: SSC) and its subsidiary, Sunshine Precious Metals, Inc., announced today that their exchange offers for the silver indexed bonds issued by Sunshine Precious Metals had been declared effective by the Securities and Exchange Commission. There are currently outstanding eight series of silver indexed bonds totalling $71.5 million in principal amount. Pursuant to the offer, each outstanding silver indexed bond would be exchanged for $200 market value of Sunshine Mining Company common stock, and a new silver indexed bond of Sunshine Precious Metals with a face value of $800. The new bonds will bear interest at 8 percent, and be indexed to the value of 85 ounces of silver. Interest and principal on the new bonds may be paid in cash or in shares of Sunshine Mining Company common stock. In addition, tendering holders of old bonds will receive shares of Sunshine Common Stock in satisfaction of accrued and unpaid interest.
 As an alternative to the exchange offers, the companies are soliciting acceptance of a Prepackaged Bankruptcy Plan for Sunshine Precious Metals. If the Prepackaged Plan is approved by a sufficient number of bondholders and the bankruptcy court, all holders of silver indexed bonds will receive the consideration offered in the Exchange Offers.
 The Expiration Date of the Exchange Offers and the Prepackaged Plan solicitation is Jan. 14, 1992, unless extended. Holders of old bonds may withdraw previously tendered old bonds at any time prior to the Expiration Date.
 The Exchange Offers and the Prepackaged Plan solicitation are part of a debt reduction program undertaken by Sunshine at the end of 1990 in response to ongoing depressed silver and natural gas prices. Since that time consolidated debt of Sunshine and its subsidiaries has been reduced from approximately $200 million to approximately $75 million.
 PaineWebber Incorporated is acting as Dealer Manager for the transactions and Georgeson and Company, Incorporated will act as Information Agent.
 -0- 12/3/91
 /CONTACT: William W. Davis of Sunshine Mining, 214-855-8700/
 (SSC) CO: Sunshine Mining Company ST: Texas IN: MNG SU: OFR


SH -- NY060 -- 8804 12/03/91 13:39 EST
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Publication:PR Newswire
Date:Dec 3, 1991
Words:359
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