Avino Silver & Gold Mines Ltd. (TSX:ASM) (NYSE American:ASM) (GV6: FSE) is pleased to announce that the concentrates prepayment agreement with Samsung C&T U.K. Ltd. originally announced on July 9, 2015, as amended, has been further extended for repayment of the balance of the principal amount of US$6,666,670 to Samsung over a two year period starting October 2019, in return for exclusive concentrate deliveries.

Pursuant to a new amending agreement, Avino will sell concentrates on an exclusive basis to Samsung until December 2024.  Samsung has previously advanced to Avino a term facility in the sum of US$10 million for such concentrates, of which Avino has repaid US$3,333,330 for a net amount owing of US$6,666,670, and the Facility will be repaid with interest from Avino’s future shipments of concentrates.  There will be a 12-month deferral period from October 2018 through and including September 2019, during which there are no repayments of principal.  Avino will then repay the balance with interest by 23 equal monthly instalments of US$277,777, commencing October 2019 and ending August 2021, followed by a single and final payment of $277,799 in September 2021.  Interest on the Facility is payable monthly at LIBOR plus 6.75% during the first 12-month deferral period.  Other material terms of the Facility remain unchanged.  The Company is pleased to take advantage of this extension of the concentrate sales agreement and revised repayment arrangement with Samsung, as this ensures a steady long-term contract for the sale of the Company’s concentrates, and will provide capital to Avino to further advance and expand its projects over the next 12 months. 

“We are very pleased to have worked with Samsung C&T since July, 2015” said David Wolfin, President and CEO.  “Extending the original contract shows that the relationship is beneficial to both parties. We are pleased that Samsung C&T, one of the world’s most recognizable companies views Avino as a trusted partner, and we thank them for their ongoing support.”

The Company’s payment of all amounts owing to Samsung is secured by a pledge to Samsung of all of Avino’s common shares in Bralorne Gold Mines Ltd. as collateral.  Bralorne Gold Mines Ltd. owns the Bralorne property located near Gold Bridge, B.C.

About Avino

Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and Canada employing approximately 500 people. Avino produces from its wholly owned Avino and San Gonzalo Mines near Durango, Mexico, and is currently evaluating the potential economics of possible future production at the Bralorne Gold Mine in British Columbia, Canada. The Company’s gold and silver production remains unhedged. The Company’s mission and strategy is to create shareholder value through its focus on profitable organic growth at the historic Avino Property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. We are committed to managing all business activities in an environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which we operate.