Sunergy Secures Initial Deposit on $500,000 Financing for PampanaRiver, Sierra Leone Dredging Operations and Pilot Plant Start Up toProduce Gold and Rare Earths Revenue
Nov 29, 2012 09:20:24 (ET)
SCOTTSDALE, AZ, Nov 29, 2012 (MARKETWIRE via COMTEX) -- Sunergy, Inc (the "Company") (pinksheets:SNEY) is pleased to announce that it has secured an initial deposit on its $500,000 financing proposal for startup of the 2012-2013 Pampana river Dredging and Pilot Plant operation in Sierra Leone and dispatches personnel to commence operations.
We have budgeted $100,000 on operations in Sierra Leone through December 31, 2012 on our 140 sq. km. Pampana River gold and Ree's concession. During Q1 and Q2 of 2013 we have budgeted an additional $400,000 for the Pampana operation, to include a commercial scale pilot plant designed to separate the recoverable gold from magnetic separation and the recoverable zircon, titanium and other easily recoverable rare earths elements produced through the pilot plant operation. The Use of proceeds of the Budget is as follows:
BUDGETS / USE OF FUNDS The following activities with budgeted costs are recommended to move the Pampana River Mining Concession toward commercial production.
FUNDS TO BE RAISED Gold/ REE's Recovery Program With Commercial Pilot Plant Operation:
Gold, REE's Dredge Operations 250,000 Commercial Pilot Plant Purchase 125,000 Operating and Permitting Costs to Operate the Pilot Plant 75,000 Administrative and Overhead Costs 50,000
Total To Be Raised $500,000
These funds are being raised through a combination of private placements for restricted shares, at a later date, favorable short term cash loans as we have done in the past and gold debentures given $1,700/oz. gold prices. This year's operations will generate new material recovered in this year's operations that will be added to our existing stockpile in preparation for Pilot Plant operations which will commence in Q1 2013. We intend to expand our stockpile significantly prior to start-up of the pilot plant in order to optimize operating efficiency for a better and more representative economic result. Cash flow should begin in Q1 and 2 of 2013 and grow over the balance of the operating season and into years 2-5. The company will also be developing resources through systematic sampling and testing along the river and its benches which will set the stage for potential off-take agreements for the REEs.
Gary Houck comments, "I am pleased that we are readying for operations in Sierra Leone with the financing available to generate cash flow from operations. We are sending our team, headed by Country Administrator Hans Strand and Garrett Hale, a Director of Sunergy's subsidiary in Sierra Leone. Mr. Wilfred Ullrich, our head of dredging operations has prepared for the startup of continuous operations for the 2012-2013 mining season, now that the rains have subsided and operations will commence in the next 2-3 weeks. We are confident the balance of funds will follow."
Company President, CFO Larry Bigler, CPA comments: "We are starting our own operations in Sierra Leone and Gary Houck has been instrumental in securing the proposed required financing to insure the success of this year's campaign. We are undertaking additional testing to further the design and commissioning of the pilot plant which will enable us to produce cash flow. In addition, we have begun preliminary discussions with a substantial alluvial mining group with a 300-500ton/hour processing capability in Ghana to determine if we can put a Joint Venture together on our Ghana Concession. We are sending personnel to Ghana as well to further this discussion."
More news to follow on this and other Company operations.
Please visit the Sunergy website www.sunergygold.com and review further information such as Company Reports under Projects, Previous Press Releases and SEC filing information under "Investor Info."
About Sunergy: The Company is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license in Ghana, West Africa and the 140.1 sq. km. Pampana River Rare Earth, Gold and Diamond concession in Sierra Leone, West Africa. We are currently operating dredges on the Pampana Project. We are production and acquisition oriented and are considering several additional projects suitable for near term production in West Africa.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin and Pampana Mining Concessions.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact: Steve Parent Sunergy, Inc. Investor Relations 480.326.5435 info@sunergygold.com
