Sunergy's Non-Mining Business Interests Offer Substantial Potential Long Term Cash Flow
Press Release Source: Sunergy Inc. On Wednesday March 26, 2014
SCOTTSDALE, AZ--(Marketwire - 03/26/2014) - Sunergy, Inc (the
- News) our core business, remains diamond and gold mining for cash flow in Sierra Leone and Liberia, but in addition, we have several non-mining partnerships and agency agreements and we are pleased to provide this timely update:
The Gambia In The Gambia, our agency agreement to represent a major Canadian Airport and Harbor security company with operations in all five terminals at London's Heathrow and Gatwick airports as well as Frankfurt, Germany and Zurich Switzerland and Abidjan, Ivory Coast, Africa, is progressing towards closing. A Security Company representative as well as a Sunergy representative will be in Banjul the first week of April to seek ratification of a 20-25 year airport concession agreement, where the total airport security operations are outsourced to this company. The Company proposes to make an initial direct investment into Gambian treasury of approximately $6,000,000 US followed with another approximate $6,000,000 over the life of the contract to continuously update and upgrade the systems and equipment. Payback is collected from international ticket sales from the ticketing agencies based on an added airport tax. The fees begin to be collected and paid monthly, starting within 8 weeks of closing. Our agency requires Sunata, our Gambian company, in partnership with ATA Systems to receive an agency fee every month for the life of the concession. More news on this when available in a few weeks.
Senegal Sunata Company Limited, our Gambian Partnership company has just today signed a Non-Disclosure and Non-Compete agreement with a Facilitator Company from Washington, DC to represent the Sunata affordable housing systems for development in Senegal. The project calls for 25,000 affordable homes to be built over the next five years in Senegal. The Facilitator Company proposes to provide construction, sales and marketing for the project and represents that it is able to secure the appropriate financing to build a factory in Senegal to further reduce overall costs associated with the housing. The project, as proposed by Sunata, includes a solar package on each home, on streetlights, and a supplemental solar farm to achieve power neutral villages that give back as much power to the grid as is used. This proposal has received a very favorable initial response and more formal proposals have been requested to further this project. Our solar presentation may offer us to assist in the development of a 250MW solar thermal power facility supported by a 25-30 year power purchase agreement which we would participate in. We have associates experienced in this exact business we can call upon when needed. More information will be forthcoming as available.
Garrett Hale, President and CEO, states: "When we first started our association with ATA Systems in our affordable housing business partnership, many did not understand why a little mining company would do such a thing. Our response was 'it's a humanitarian project that is able to provide top quality US building code compliant housing to countries that desperately require this type of solution, low cost, fast built, 20 year guarantee and the best part, we can make a profit,' which means it is a sustainable project, not dependent on charitable donations and the like."
Hale continued, "Since we first announced this association with ATA on September 19, 2013 (See Press Release), we have received expressions of interest for housing solutions in Sierra Leone, Liberia, The Gambia, Senegal and recently, Namibia and we are pursuing all of these opportunities. In addition, through ATA's security systems people, we were selected by their contact to represent our Canadian Airport Security client in The Gambia. This deal alone will earn us a few million in long term revenues once finalized. So far our costs are some local airfare from Sierra Leone to Gambia and back a few times, so we are very fortunate to have ATA as our partner and these opportunities on our plate."
Mining activities in both Sierra Leone and Liberia are now underway. In Sierra Leone, two 8 inch dredges and a land based operation are ongoing. In Liberia, we have two 5 inch working dredges, one starts this weekend and another identical dredge begins by April 15th. Dredgemaster is refurbishing a third dredge in Sierra Leone that sits ready to begin operations in either country as needed. Plans to increase our dredge operations are underway, with six dredges targeted to work this year in each country. Operating results will be available shortly after the end of first quarter so as to not delay the 10K filing. Please visit our website: www.sunergygold.com Update on Sierra Leone operations will be forthcoming soon.
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. As its core business, the Company has made a transition from an exploration only company to a company now focused on production and cash flow. We now have four dredges operating, 2 in Sierra Leone and 2 in Liberia. A 5th dredge sits between the two countries awaiting the most favorable deployment opportunity for fast cash flow. In addition to our core mining activities, the Company has used its considerable contacts earned over the past 4 years to develop non-mining partnerships and agency agreements with major international businesses representing Airport Security and Affordable Housing projects and Solar energy projects up to 250 megawatts, in the five West Africa Countries of Ghana, Sierra Leone, Liberia, The Gambia and Senegal.
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 on mining concessions or cash flow from any mining operations.
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.