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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