History
International Silver, a small Arizona explorer, chased silver properties in California and Nevada, leaned on convertible loans from one lender, and stopped filing SEC reports in 2014.
2008-2011: Reworking the Langtry deal and a move into Nevada
International Silver, based in Tucson, Arizona, set out to build a silver business from mining claims. In September 2008 it renegotiated the purchase of the Langtry silver property in California. The closing moved from September 7 to December 5, 2008, and the price changed from $8,000,000 to $2,000,000 upfront, with $6,000,000 owed over 15 years at 6% interest under two promissory notes. The record seen does not confirm that the purchase was completed. Its 2008 annual report carried a going concern warning, meaning the auditor doubted the company could keep operating without new money.
On January 4, 2011, the company announced a lease/purchase agreement for the Pan American Zinc/Silver Mine and the Caselton Concentrator, a processing mill, in Lincoln County, Nevada, near its Prince Mine option. No price was given, and the mill needed minor repairs, permits in the company's name and a new tailings dam (a waste storage dam) before restarting. Shares on issue rose from about 28.6 million at the end of 2010 to about 36.8 million a year later; the beats do not explain the rise.
2012-2014: Convertible loans and the end of reporting
In February 2012 the company signed a convertible note with ISLV Partners, LLC, an unaffiliated party, for roughly $600,000. The note converts into shares at $0.20 each, and came with a warrant (a right to buy shares) for 3,000,000 shares at $0.40 through February 6, 2015.
The funding continued. In February 2013 a second amendment added $1,000,000 loaned immediately and up to $1,200,000 more by April 15, 2013, with a further 5,000,000 warrants at $0.40. On May 31, 2013, a third amendment brought another $500,000 and the right to lend up to $700,000 more by July 1, 2013, with 2,500,000 more warrants. Conversion and warrants threatened further dilution of existing shareholders. Shares on issue stood near 37.9 million at the end of 2014.
On November 18, 2014, the company suspended its duty to file periodic reports with the SEC. As of that date it still relied on convertible borrowing, and the outcome of the Langtry and Pan American purchases was not shown in the record.
Written from the 6 story beats below (2008 to 18 Nov 2014), which come from the company's own announcements and filings.