MALBORO, N.J., May 15, 2013
/PRNewswire/ -- US Precious Metals, Inc. ("Company") (OTCQB:
USPR) is pleased to announce that on May 11,
2013 it entered into an agreement to acquire Resource
Technology Corp. ("RTC").
RTC assets include 3 ore supply agreements from 3 high grade ore
mines, 2 from within the United
States and one internationally. It also has a processing
agreement with Plasma Processing LP ("PP LP") which utilizes patent
pending, plasma technology to increase the rate of extraction of
precious metal concentrates. RTC currently is a
1/3rd net revenue share partner with both the mining
property owners and PP LP.
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The plasma processing plant, located near Palm Springs, California, took 3 years to
build and is fully operational and permitted to process ore
concentrate. PP LP has agreed to increase its daily capacity to 10
tons/day in order to satisfy the terms of this contract. Upgrades
to the system are expected to be completed within 90 days.
The Agreement with PP LP provides for an initial processing
capacity of 5 tons/day for approximately 200 days per annum, and
allows for an increased capacity to 10 tons/day for approximately
300 days per annum. Subject to the other terms of the Agreement, PP
LP has guaranteed a benchmark run of 5 tons/day for 20 consecutive
days with a minimum value of $50,000
(net to RTC) per ton from the existing ore supply contracts.
When fully operational, the plant is expected to run for
approximately 300 days per year with an anticipated minimum of
1,000 tons of high grade ore per year generating $150,000.00 per ton. The parties believe that
they will be able to supply the additional concentrates needed to
support a 10 ton/day 300 day/year operation. Initially the contract
term is for 5 years with a yearly extension option for an
additional 4 years after this date.
As part of the transaction, US Precious Metals may supply its
own ore concentrate for plasma processing in which case, USPR will
receive a 2/3rds of the revenue stream.
In exchange for the RTC acquisition, the Company will issue to
the RTC shareholders 300 million shares of common stock. All stock
will be issued and held in escrow until such time as the conditions
of the benchmark run have been met.
Mr. John Gildea, Board Member and
USPR spokesperson stated: "After completing extensive due diligence
over the last numbers of months and carefully structuring this
transaction, we feel this acquisition is a fantastic opportunity
for USPR and its shareholders. In light of the extremely difficult
environment for both junior miners and explorers, this allows USPR
to become a revenue generating company in a very short space of
time which in turn allows us to focus on our Mexican property. We
have strong intentions of commencing work in Mexico in the very near future and we already
are in discussions to facilitate this development. Our overriding
objective is to grow the company and maximize value to all USPR
shareholders. We strongly believe this transaction helps us to
achieve our goal."
Mr. Genarro Pane, Chairman and
President of the Company, and Mr. Chad
Altieri, a Director of the Company, are significant equity
holders in both RTC and PP LP. The Company recognized the conflict
of interest, and created an independent committee consisting of
three directors for purposes of this transaction. The committee has
analyzed, reviewed, negotiated and approved the transaction with
RTC, subject however to the approval by the majority vote of the
Company's shareholders.
About PP LP:
Plasma processing employs an extremely high heat (in excess of
7,000 F) process which breaks down ore concentrates into their
basic elemental state. The plasma process, called Plasmafication ,
is state of the art technology developed in conjunction with
leading US Universities, specifically designed for precious metal
separation and the Company is excited that it will be the first in
the industry to employ it. This process will yield significantly
greater processing returns than milling processes currently
employed in the mining industry.
About USPR:
US Precious Metals, Inc. is an exploration stage company engaged
in the acquisition, exploration and development of mineral
properties. We focus on gold, silver and copper primarily located
in the State of Michoacan, Mexico
where we own exploration and exploitation concessions to
approximately 37,000 contiguous acres of mineral rights.
Disclaimer/Disclosure Content
This Press Release may contain, among other things, certain
forward-looking statements, including, without limitation, (i)
statements with respect to the Company's plans, objectives,
expectations and intentions; and (ii) other statements identified
by words such as "may", "could", "would", "should", "believes",
"expects", "anticipates", "estimates", "intends", "plans" or
similar expressions. These statements are based upon the current
beliefs and expectations of the Company's management and are
subject to significant risks and uncertainties. Actual results may
differ from those set forth in the forward-looking statements.
These forward-looking statements involve certain risks and
uncertainties that are subject to change based on various factors
(many of which are beyond the Company's control), including,
without limitation, the ability of the plasma technology to perform
as anticipated and the Company's ability to obtain funding to
develop its Mexican property and to pay its existing
liabilities.
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U.S. Precious Metals, Inc.
http://usprgold.com (Our new website is currently under
construction due to the exciting new developments we are
experiencing. We anticipate that we will be back online in the very
near future)
Investor Relations:
FN Media Group
ir@fnmediagroup.com
(954)968-9322
SOURCE US Precious Metals, Inc.