SILVERDALE, Wash., March 13, 2013 /PRNewswire/ -- CGrowth
Capital, Inc. (Pink Sheets: CGRA) (the "Company") is pleased to
announce that it has initiated a major milestone in the execution
of its business plan by signing a Purchasing and Sale Agreement for
the Deer Trail Mine in Eastern Washington. The 40 acre fee
simple parcel contains three (3) historically active mines and is
grandfathered as an active mining site.
The Deer Trail Mine is the location of the Company's originally
announced joint venture agreement to process 170,000 tons of head
ore material. The transaction once complete will supersede
the joint venture agreement and now gives the Company access to an
estimated 200,000 tons of surface material. Ownership of the
property will set the stage for onsite development of operations as
well as future development and extraction of the subterranean
material within the property. In addition to the mines and
ore material, the site is an approved operational mine/mill site
with three (3) approved tailing ponds which will help to jump start
operations.
"To say we are excited is an understatement," said Bill Wright, CEO of CGrowth Capital, Inc., "We
have been working for many months to create a win-win situation for
both the Company and the mine owner – and the time has finally
come. With ownership rights to the property, we can now
proceed with building out our concentration plant for long term
production."
In keeping with our fiduciary responsibilities, shareholders
should be pleased to learn that the Company was successful in all
aspects concerning the crafting of this purchase. CGrowth
Capital, Inc. was prudent in capping the royalty payments; this
combined with the favorable purchase price and terms will position
the company with a stronger balance sheet and higher margins in the
longer term, thus producing shareholder value. Details of the
transaction will be provided upon the closing.
Mr. Wright continued, "We are extremely pleased with the deal
structure for this purchase. The seller could see the value
in cooperating with us on favorable terms by taking an equity
position with us. This will allow us to utilize precious cash
towards production and growth rather than extended debt payments.
In the end, both parties win by our ability to move into higher
production earlier. The fact that we were able to cap the
royalty payment will be a big win for long term shareholders."
For more information about CGrowth Capital, visit their website:
http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for
businesses and assets focused on all aspects of mining. The
processing of metal ore mining is a multi-billion dollar market
opportunity which is capitalized through processing, sales,
contracting and licensing of assets. CGrowth Capital's
services and solutions are designed to assist land owners with
monetizing undervalued assets by bringing commodities such as gold
and silver to market. CGrowth Capital will focus on acquiring or
"claiming" land assets, while also providing partners and
affiliates with management services, capital, contract management
and logistical services necessary for the successful execution of
mining operations.
Investor Inquiries:
CGrowth Capital, Inc.
888-218-2472
Safe Harbor
Statements about the Company's future expectations and all other
statements in this press release other than historical facts, are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934, and as that term is defined in the Private Securities
Litigation Reform Act of 1995. The Company intends that such
forward-looking statements be subject to the safe harbors created
thereby. The above information contains information relating to the
Company that is based on the beliefs of the Company and/or its
management as well as assumptions made by and information currently
available to the Company or its management. When used in this
document, the words "anticipate," "estimate," "expect," "intend,"
"plans," "projects," and similar expressions, as they relate to the
Company or its management, are intended to identify forward-looking
statements. Such statements reflect the current view of the Company
regarding future events and are subject to certain risks,
uncertainties and assumptions, including the risks and
uncertainties noted. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
to be incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated, expected,
intended or projected. In each instance, forward-looking
information should be considered in light of the accompanying
meaningful cautionary statements herein. Factors that could cause
results to differ include, but are not limited to, successful
performance of internal plans, the impact of competitive services
and pricing and general economic risks and uncertainties. The
Company disclaims any obligation to update or revise any
forward-looking statements.
SOURCE CGrowth Capital, Inc.