Dec 27, 2013 07:45:00 (ET)
Sunergy Management Returns From Successful Visit to West Africa and Commences Operations in Dredging for Gold, Diamonds and Black Sands to Produce Cash Flow in 2014
SCOTTSDALE, AZ--(Marketwired - Dec 27, 2013) - Sunergy, Inc. (the "Company") (OTCQB: SNEY) is pleased to announce that Management has returned from West Africa completing arrangements to commence its dredging operations in Liberia and Sierra Leone under the supervision of Dredgemaster David Price. Mr. Price remains in Sierra Leone and is engaged in moving two dredges into operations locations there, with the first dredge already operating in a test location. During his visit in Sierra Leone, Dredgemaster visited two sites in Kono district that previously hosted substantial diamond production. These sites were shut down during the conflict and have not been operated since due to the Paramount Chief's interest in preserving the riches for his chiefdom. We enjoyed a meeting with the Chief and several associates of his that we also knew. This resulted in our being granted exclusive rights to work these areas in partnership with the Chiefdom. This area is reported as one of the richest areas for diamonds and gold in Sierra Leone. This Chiefdom is also the largest in Sierra Leone and we expect to enjoy other development opportunities there.
Mr. Price will return to Liberia after the holidays to deploy our initial dredge into operations. While visiting Liberia in early December, he visited three potential operating sites, two with good operating history and one speculative site. After consultation with management, it was determined that the Bomi Hills site was the most suitable one to begin operations. The other two sites, Lofa River Bridge and Saint Paul River remain as potential work sites, depending on equipment availability and other criteria pending test results. This recent trip covered beneficial visits to Liberia, Ghana, Sierra Leone, Dubai and The Gambia.
Ghana does not allow dredging in its rivers for gold and diamonds and alluvial operations are allowed 200 meters from the rivers with excavators, trucks and wash plants for recovery which requires substantial capital. Accordingly, we are seeking a development partnership with owner/operators of the above equipment for near term profitable operations. We are also considering additional mining concession acquisitions in Ghana at this time. Our recent trip involved 2 visits to Ghana and has advanced progress substantially. Management will continue to follow up after the holidays.
We are also working on a large project in The Gambia through our ATA Systems partnership that has potential for a long term income stream for our Company. More to follow.
Sunergy President and CEO Garrett Hale says: "After having visited Liberia for the first time, I am really excited with the opportunities that have been presented to us. There is no question that we will be able to get at least a half dozen dredges working this operating season. We now have established new wholly owned subsidiaries in both Sierra Leone and Liberia, named Sunergy Sierra Leone, Limited and Sunergy Liberia, Limited to be the vehicles through which we conduct our new diamond and gold cash flow operations. I am so proud of our new Management personnel who will return after the holidays to get everything running smoothly. This trip has exceeded all our expectations. Honestly, I can't wait to get back to our West African people and operations. All of us at Sunergy wish our shareholders a happy and prosperous new year, and we will do everything we can to make that happen."
Dredgemaster David Price comments: "I am extremely pleased to be working with Sunergy now and want to take this opportunity to say that Management is truly focused on what's best for the Company and its shareholders in my opinion. The opportunities they have shown me are truly exciting and they have worked well and hard to bring them to the shareholders. The new focus on cash flow makes a lot of sense and they have brought us to that point. I will be certain to make that a strong reality. I am also searching for additional equipment in both countries for rent or lease purchase to accelerate our development plan. If things go smoothly, we should have 3 dredges operating in each country by mid February. I want you to understand something, I get paid mostly on performance bonuses, so I want to make this as big as we can, for all our benefit."
Clarification on anticipated 2013 cash flow: We had anticipated being able to report cash flow for 2013, but the required paperwork to be able to export gold and diamonds takes some time and money. To rush to sell locally, just to report sales is not economically sound. We plan to use upstream diamond prices and refinery prices for gold and will have positive results to report as subsequent events in our 10K and in Q'1 filing.
CASH FLOW AND PROFITABILITY
Company Management has dramatically changed its operating plan from an exploration model to a cash flow driven operation. We have entered into sponsorship agreements in both Sierra Leone and nearby Liberia to combine our equipment and operating expertise with local artisanal miners to assist in the rapid development of otherwise hand driven operations only. Two benefits occur immediately, one for the local miners who gain support on the recovery of their discovered gold, diamonds and black sands and one for our Company, having the exploration phase already completed and gaining the opportunity to immediately begin operations in already proven lands and rivers which are capable of producing economic quantities of Gold, Diamonds and Black sands containing the rare earth elements. Management believes this enables the company to enter into immediate and sustainable cash flow which is acretive to shareholder prosperity.
SUNERGY, Inc., a Nevada corporation (OTCQB: SNEY) is a publicly listed and traded, production oriented, junior mining company headquartered in Scottsdale, Arizona, USA that is production oriented at the earliest possible profitable opportunity and has an appetite to grow by profitable acquisition. It is engaged in the evaluation, acquisition, exploration, planned operation and advancement to production of largely alluvial gold/rare earth elements and diamond recovery projects in Ghana, Sierra Leone and Liberia West Africa. This year marks the beginning of our Cash Flow Operations as the Operating season is just about to get underway.
