U.S. Silver Corp said all salaried personnel have taken a 10 percent salary reduction and the union representing the hourly employees has also approved a similar reduction in wages for the hourly workforce.
It said managers have also significantly reduced their cash compensation until cash goals are achieved, but declined to give specific numbers.
It also said it has suspended repair work on the Galena shaft, which is within five months of completion, thus saving US$175,000 per month.
The company is negotiating with major suppliers for further cost reductions for goods and services. All of these initiatives are expected to save the company at least US$300,000 per month in expenses going forward.
John Ryan, one of the founders of U.S. Silver, tendered his resignation from the board, after becoming the president and chief executive of Sterling Mining Corp, a position that will require his full attention.
It further responded to speculation in the local North Idaho press that an ownership consolidation of various silver properties in the Silver Valley may be occurring, and would include the company’s Galena, Coeur and Caladay properties. “These reports are not correct and the company is not part of any consolidation effort,” it said.