Southridge Signs Letter of Intent for $1.2 Million Commitment to Fund Cinco Minas Mill
January 17 2012 - 11:02AM
Marketwired
Southridge Enterprises Inc. (PINKSHEETS: SRGE) ("Southridge" or the
"Company") is pleased to announce it has recently entered into a
Letter of Intent ("LOI") for a $1.2 million USD funding commitment.
Under the terms of the LOI, the investing partner company will earn
a 35% equity stake in the net revenues from Phase 1 of the Cinco
Minas Mill Production Plan (MPP) and have the first right of
refusal to participate in the future expansion of the mill's
capacity to 500 tonnes per day. Further details of the LOI are as
follows:
- $50,000 USD cash deposit, of which $25,000 was received on
January 12th and the remaining $25,000 is to be paid upon
completion of due diligence and the signing of a Definitive
Agreement that is expected to occur within 30 days of entering into
Letter of Intent.
- $950,000 USD direct capital investment into the Cinco Minas
Mill Production Plan (MPP) for the sole purpose of retrofitting the
plant to process 60 tonnes of ore per day.
- $200,000 USD commitment to reinvest back into MMP from earnings
received from initial production.
"I am very pleased we have secured this funding which will
expedite the Cinco Minas Mill Production Plan and expect to be in
full operation and production in a short period of time," stated
Michael Davies, President. "We look forward to advancing our Mill
Production Plan immediately. In addition, I believe our Mill
Assessment Committee has done such an exceptional job in building
and developing a new strategy for the Cinco Minas Mill that I am
confident will result in production profits by the third quarter of
2012. The MPP business strategy sets us apart from other junior
mining companies because we have an advanced stage property and
facility and confirmed mineral resources from which to begin
production. Our timeline to turn a profit is much shorter than many
other companies. Southridge expects a prompt return on investment
from the mill and increased annual earnings at an accelerated rate,
due to our capacity for expansion."
Phase 1 of the MPP is exclusive to processing ore through the
mill supplied from the 71,734 tonne stockpile onsite with an
average grade of 1.66 g/t Au (gold) and 203 g/t Ag (silver),
estimated by the Guadalajara, Mexico, office of the international
consulting firm to the mining industry Behre Dolbear. Given the
quantity of stockpiled ore onsite and the high mineral grades in
Behre Dolbear report, the Company has estimated the Cinco Minas
Mill could yield over $10,000,000 in total production revenues, at
current gold and silver prices, from the two years of ore supply at
full production capacity of 60/tonnes per day.
There will not be an issuance of shares from Southridge as a
part of this transaction.
For further information on the Company's Gold and Silver
projects, visit our website, http://www.southridgeminerals.com
Southridge Investors can access the following Southridge
Minerals social media channels:
YouTube Cinco Minas Mexico Project:
(http://youtu.be/R6P8oght4Ik) (http://youtu.be/o2LfLaSu8ww)
Facebook:
(http://www.facebook.com/pages/Southridge-Minerals-Inc/163457600376466)
Twitter: (http://twitter.com/SouthridgeSRGE)
About Southridge Minerals, Inc. (PINKSHEETS: SRGE) Southridge
Minerals, Inc. is a U.S.-based mineral exploration company
dedicated to acquiring and developing mineral resources in
geologically permissible and politically stable areas of the world.
The Company seeks out early stage opportunities with good
mineralization indicators that exhibit significant blue-sky
potential. Southridge pursues and advances these projects that are
or will be of interest to mid-size and major producers. By forming
alliances on individual projects, the Company expects to develop
its interests in mines operated by its partners, allowing it to
continue to build value through continued exploration. Southridge
is currently focused on projects in Mexico.
What sets Southridge apart is its vast experience in Mexico and
the knowledge of the geological conditions and formations
pertaining to known large gold deposits that have received very
little attention to date. This comparative advantage, combined with
a specific geographical and mineral focus, will allow for more
efficient asset and income growth in the future for the benefit of
shareholders' investments.
Forward-Looking Statements Although the Company believes that
the forward-looking statement of beliefs, plans, expectations, and
intentions contained in this press release are reasonable, there
can be no assurance those beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consider all
of the information set forth herein and should also refer to the
risk factors disclosed in the Company's published current and
periodic reports.
Karen Mills Investor Relations Tel. (214) 699-6255 Email: Email
Contact http://www.southridgeminerals.com
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