DALLAS, TX--(Marketwire -01/17/12)- Southridge Enterprises Inc. (Pinksheets: SRGE.PK - News) ("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:
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About Southridge Minerals, Inc. (Pinksheets: SRGE.PK - News)
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.
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.
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.
Contact:
Karen Mills
Investor Relations
Tel. (214) 699-6255
Email: Email Contact
http://www.southridgeminerals.com
Investor Relations
Tel. (214) 699-6255
Email: Email Contact
http://www.southridgeminerals.com
