Win-Eldrich Signs LOI With American Mining CorporaWin-Eldrich Signs LOI With American Mining Corporation for Modification and Expansion of Ashdown Mill
TORONTO, March 24 /CNW/ - Win-Eldrich Gold Inc. ("WEG"), a wholly owned subsidiary of Win-Eldrich Mines Limited ("WEX") (TSXV:WEX.V), and American Mining Corporation ("AMC"), a Nevada corporation, are pleased to announce they have entered into a Letter of Intent ("LOI") in which the two companies agreed to create a new Limited Liability Company ("LLC") for the purposes of expanding the existing 100 ton per day mill to a 200 ton per day mill. The expanded facility will provide the ability to process the historic gold resource at Ashdown identified in several historical reports and will operate as a regional custom milling facility. The Ashdown historical gold resource has not been verified as a current resource, a feasibility study has not been completed and there is no certainty that the proposed operation will be economically viable.
The terms of the LOI are as follows:
•Each company will own 50% of the new LLC.
•AMC will make a $500,000 initial payment to WEG.
•AMC will make a $1,500,000 payment to WEG upon execution of the definitive agreement (90 days).
•AMC will contribute a 100 ton per day gold circuit to the LLC to double production at Ashdown.
•WEG will contribute the permitted and operating Ashdown flotation mill to the LLC.
•The two companies will share costs and net profit from the sale of recovered gold and other metals based on their ownership interest in the LLC.
The LLC will be responsible for the costs of completing the permitting, installation and commissioning of the modified and expanded mill. When completed, the capacity of the Ashdown Mill facility will be 200 tons per day.
Perry Muller, CEO of Win-Eldrich, comments that "sustained high gold prices have encouraged WEX to pursue development of the historic gold resource at Ashdown in addition to continuation of profitable molybdenum sulfide concentrate production. The LOI with AMC also allows WEX to satisfy its commitments to creditors and to expand operations for the benefit of our shareholders. We are looking forward to working with AMC."
Gary MacDonald, CEO of American Mining states that "we look forward to working with Win-Eldrich as through our assessment of the Ashdown facility, we have seen an experienced team that is dedicated to minimizing operating costs and increasing metal production. This opportunity furthers AMC's business model of acquiring and operating regional custom-milling centers in Nevada. Our custom mills focus on processing gold ores that enhance mill profitability for the benefit of our clients and stakeholders."
Versatech Capital For Mining (www.versatechcapitalformining.com), a boutique mine financing firm, has been an advisor and source of funding for this LOI. Versatech's contact is George Petker at (775) 830-3401.
https://finance.yahoo.com/news/Win-Eldrich-Signs-LOI-With-cnw-414710337.html?x=0&.v=1
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This should make our 2% NSR more valuable over time!