Win-Eldrich Signs LOI With American Mining Corporation for Modification and Expansion of Ashdown Mill
24 Marzo 2011 - 4:11PM
PR Newswire (Canada)
TORONTO, March 24 /CNW/ -- TORONTO, March 24 /CNW/ - Win-Eldrich
Gold Inc. ("WEG"), a wholly owned subsidiary of Win-Eldrich Mines
Limited ("WEX") (TSXV:WEX), 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. This news release includes certain forward-looking
information and forward-looking statements (collectively "forward
looking statements") concerning the future performance of our
business, its operations and its financial performance and
condition, as well as management's objectives, strategies, beliefs
and intentions. Forward-looking statements are frequently
identified by such words as "may", "will", "plan", "expect",
"anticipate", "estimate", "intend" and similar words referring to
future events and results, including in respect of the increase in
production levels at the Ashdown mine. Forward-looking
statements are based on the current opinions and expectations of
management. All forward-looking statements are inherently
uncertain and subject to a variety of risks and uncertainties,
including the speculative nature of mineral exploration and
development generally and specifically in respect of the
interpretation of the geology, continuity, grade and size of
mineral deposits, unanticipated operational or technical
difficulties, fluctuating commodity prices, competitive risks and
the availability of financing, changes in laws or regulations,
changes in the financial markets and changes in general economic
conditions, as described in more detail in our recent securities
filings available at www.sedar.com. Such forward-looking statements
are based on a number of assumptions, including but not limited to
the level and volatility of the price of molybdenum, the
availability of financing, the accuracy of reserve and
resource estimates and the assumptions on which those estimates are
based and the ability to achieve and maintain certain operational
efficiencies. Should one or more risks and uncertainties
materialize or should any assumptions prove incorrect, then actual
events or results may differ materially from those expressed or
implied in the forward looking-statements and we caution against
placing undue reliance thereon. We assume no obligation to revise
or update these forward-looking statements, except as required by
applicable law. NEITHER THE TSXV VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE. To view this news release
in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/March2011/24/c6407.html
p align="justify" Perry Muller, President and Director of
Win-Eldrich, at (402) 435-7206. /p p align="justify"
Website: a href="http://www.win-eldrich.com"
cr="true"www.win-eldrich.com/a /p p Gary McDonald, CEO of American
Mining, at (888) 505-5808 Ext. 1. /p p Website: a
href="http://www.americanminingcorp.com/"
cr="true"www.americanminingcorp.com//a /p
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