Wishbone Gold PLC Honduras Mining Joint Venture (1637B)

TIDMWSBN

RNS Number : 1637B

Wishbone Gold PLC

31 March 2017

31 March 2017

Wishbone Gold Plc

("Wishbone Gold" or the "Company")

Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

Honduras Mining Joint Venture

Wishbone Gold plc, the trading and exploration company focused on precious metals (gold and silver), today announces it has signed a joint venture agreement through its subsidiary, Wishbone Gold Honduras Ltd ("Wishbone"), with SION Honduras SA ("SION"), to fund the development and exploitation of existing gold mine sites in Honduras. SION is an associated company of Scotia International of Nevada Inc, a privately-owned mining equipment supply company based in the United States of America. SION has an agreement with the Honduran government to modernise and expand the Honduran mining industry.

The agreement provides that Wishbone and SION will provide equipment and expertise to existing small mines in Honduras to enable them to increase production. In return, the mines will agree to supply Wishbone's trading subsidiary Black Sand FZE with all the output from the mines at preferential prices.

The benefit to the mine is that the increased production means higher sales and higher profits. Wishbone and SION obtain security of supply at preferential prices and the Honduran government is guaranteed that all taxes will be paid by the mines.

The aim is to recover each investment within twelve months. Thereafter the margin remains shared equally with SION. The agreement runs for 30 years.

Richard Poulden, CEO and Chairman of Wishbone Gold commented: "Working with SION in this way implements Wishbone Gold's strategy of reverse integration into the small mining sector around the world. This secures supply and increases margins. The investment will enable exploitation of the substantial base of small mines in Honduras and will lead to an increase in output from these sources. All gold mined and recovered from these sites will be sold through Wishbone's trading subsidiary Black Sand FZE."

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www.wishbonegold.com

For further information, please contact:

 
 Wishbone Gold Plc 
 Richard Poulden, Chairman    Tel: [phone] 
  and CEO                      0645 
 Allenby Capital 
 Nick Naylor / Nick Harriss   Tel: [phone] 
  / James Thomas               5656 
 Beaufort Securities 
 Elliot Hance                 Tel: [phone] 
                               8300 
 Damson Communications 
 Amelia Hubert                Tel: [phone] 
                               0645 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 31, 2017 04:56 ET (08:56 GMT)