Southridge Updates Shareholders on Possible NYSE Mining Takeover,
Joint Partnership and Releases Positive events at its "El
Horconcito" Gold Property
DALLAS, Nov. 21, 2012 /PRNewswire/ -- Southridge
Minerals, Inc. (PINKSHEETS: SRGE) ("Southridge" or the "Company")
is pleased to announce a shareholder update and releases positive
events at its "El Horconcito" Gold property, in the state of
Durango, Mexico. Due to numerous
shareholder inquiries following the recent announcement,
"Southridge Evaluates Strategic Alternatives for Cinco Minas
Property and Reports Advanced Discussions with Major NYSE Listed
Metal Producers concerning Cinco Minas", the Company would like to
update its shareholders.
The Company and its advisers are currently evaluating
alternatives and are in advanced discussions with two major NYSE
listed metal producers regarding their Jalisco mineral concessions and properties.
One of the firms has already signed preliminary documents for the
full acquisition of the Cinco Minas property. Southridge would like
to give its shareholders an indication of how the funds will be
used in the event a full sale is affected for its Cinco Minas
Property. The company would like to state that shareholders will
definitely participate in a direct, immediate, tangible benefit of
such sale (i.e. special cash dividend for 20% of the proceeds from
the sale of the Cinco Minas Property or a flat 20 cents per share special one-time dividend).
Southridge and its Board of Directors can only state at this time
that the amount being discussed is in the range of $550,000,000 and $600,000,000 for its Cinco Minas Property. Due to
certain reasons the company cannot fully disclose exact details at
this time. However the company felt it was very important to
release some details to explain what's in it for shareholders and
what the company and its Board of Directors are discussing as this
time.
Furthermore the cash from such sale would allow Southridge to
ramp up exploration and mining with its portfolio of mineral
properties located in several world-class mining regions of
Mexico. The properties include the
past producing and flagship property Cinco Minas, along with the
Gran Cabrera, Los Compadres, La
Esperanza, La Canita and El Horconcito. With metal prices
forecasted to remain buoyant, properties that offer significant
potential for Gold and Silver occurrence, a diverse management
team, and a strong cash position, Southridge Minerals is well
positioned to develop its opportunities and build shareholder
value.
Additionally, a major gold producer with a satellite office
located in Guadalajara has
contacted Southridge with a joint partnership interest in Cinco
Minas and the companies are engaged in serious discussions at this
time. Should Southridge feel it's more beneficial for the Company
to sign a Joint Partnership with this major Gold producer instead
of selling its Cinco Minas Property, then Southridge would look to
have its shareholders benefit from this transaction as well. The
Company and its board of directors are currently discussing the
possibility of a quarterly cash dividend to its shareholders from a
certain percentage of earnings made from such Joint Venture.
Southridge is in negotiations with this major gold producer to
inject an amount of roughly $680,000,000 into this Joint Partnership in order
to help the Company aggressively mine Cinco Minas and it's up to
$5 billion in Gold and Silver
reserves. The size of this project is rather large and that's why
the company is in serious discussions with a NYSE major
producer because it feels this will allow Southridge to
aggressively mine and explore the property at a much faster rate
therefore leveraging the price of Gold at today's market value.
Cinco Minas, the Company's flag-ship mineral property, has a
world-class confirmed gold and silver resource of 235,000 oz. gold
and 23.3 million oz. silver with 80% of the known vein system yet
to be tested. Today's market value of the confirmed resource at
Cinco Minas is well over $1 Billion
USD (this is only 20% of Reserves), prior to the completion
of further planned exploration to expand the resource. Southridge
expects that the process could be completed within approximately 4
weeks. There can be no assurance that any transaction regarding the
Cinco Minas property will be completed. The company does not intend
to disclose developments with respect to the progress of its
strategic alternatives review process until such time as the
Southridge board of directors approves or completes a transaction
or otherwise determines that further disclosure is appropriate.
Southridge would also like to update its shareholders on its
newly acquired 100% interest and assets comprising the mineral
concessions in its "El Horconcito" Gold property, in the state of
Durango, Mexico. The trenching and
sampling program that was conducted during the month of October
returned exceptional results. The Company has now initiated a
diamond-drill program set out to broaden the Gold resources at El
Horconcito.
El Horconcito is located in the San
Dimas mining municipality of Durango, close to the
Sinaloa border. The company and
its board of directors feel El Horconcito is a very valuable asset
to Southridge and its shareholders because within this same region,
Primero Mining operates the San Dimas Mine, a producing gold and
silver asset that was purchased from Goldcorp in 2010. The San
Dimas Mine has probable reserves of over half a million ounces of
gold and 31.8 million ounces of silver. Part of the prolific Sierra
Madre Occidental gold belt, the world's largest epithermal precious
metals belt, San Dimas is home to
several world-class mining operations. Historical production in the
San Dimas mining region is
estimated to be over 11 million ounces of gold and 582 million
ounces of silver.
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.
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
Mobile Site: www.srge.mobi
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.
Southridge Enterprises Inc.
Investor Relations
Tel. (214) 699-6255
Email: info@southridgeminerals.com
http://www.southridgeminerals.com
SOURCE Southridge Minerals, Inc.