Sunergy, Inc.: Sierra Leone Acquisition Due Diligence Completed and Definitive Written Agreement Terms Agreed for 140.1 Sq. Km. Gold, Rare Earths and Diamond Concession, Enabling Rapid Closing
Press Release Source: Sunergy Inc. On Thursday September 16, 2010, 7:04 am EDT
SCOTTSDALE, AZ--(Marketwire - 10/14/10) - Sunergy, Inc (the
- News) (the "Company") reports that due diligence on the Allied Mining and Supply, LLC (Nevada) planned acquisition of 100% of their Company has been completed successfully (See Press Release dated September 7, 2010). The terms of the definitive agreement have also been agreed upon and the Company intends to close the transaction as soon as practical. Full details will be published at closing, but suffice it to say the recent depressed market for Sunergy shares has had no adverse effect on the Company's ability to complete the transaction.
Allied is engaged in the licensed exploration and development of prime alluvial gold, rare earths and diamond properties in Sierra Leone, West Africa. It has business and export licenses for Sierra Leone. It is exploring, dredging and bulk sampling in a number of areas within its concession territory of 140.1 square kilometers on the Pampana River, licensed in 2009.
Sunergy Chairman P. K. Medhi says: "I am pleased that we have been able to complete due diligence and agree on terms of the transaction quickly. For Sunergy to be able to expand our West African mining operations into Sierra Leone on an advanced property with management and a quality operations team already in place is a milestone for the Company. We look forward to closing this transaction which will be accretive to shareholder value. We are targeting additional rapid growth in Ghana and Sierra Leone as well as other African near term gold production opportunities."
This property is in the heart of one of Sierra Leone's richest alluvial gold mining fields, South of the Sula Mountains in the Greenstone belt on the North Pampana River, around 120 miles east of the capital, Freetown. With gold over $1,200 per ounce, high tonnage alluvial mining is extremely attractive. Assay results from a recent sampling program (completed spring 2010) reveal widespread and commercially minable alluvial deposits of Rare Earth and transition metals in addition to gold values.
Allied recently obtained a NI 43-101 Technical Report on the Pampana North section of the prospect that states the property "... is a property of merit and should receive continued exploration efforts" and that "the northeastern portion of the mining property contains a known bedrock gold vein potential, which is 1,200 feet long, and located 9 km from the Yirisen gold deposit. (Past geological studies have indicated that Yirisen is one of the largest gold vein deposits in Sierra Leone.)"
Historical reports indicate recoverable alluvial gold on the Pampana North section (40.1 sq/km or 28% of concession area) at over 500,000 oz. with average grades of 0.12 ounces per tonne qualifying as superior grade deposits as defined by the US Bureau of Mines. The Company was also granted a boundary modification by the Sierra Leone Mines Ministry to include an adjacent 100 square kilometers immediately on the other side of the river. This adds an additional 72% land area in which recent testing has shown apparent continuity of gold and Rare Earths. These rare earths are consistent and verified in the river channel and along the banks and benches. Allied geologists estimate 50kg./tonne rich black sands containing rare earths are easily recoverable, suggesting the likelihood of highly profitable and immediate mining. Inspection of artisanal mining and prospecting sites within the license area show rare earths consistently throughout the claims.
Testing and existing data indicate gold concentrations ranging from 1 to 18 grams per tonne of material. Fire assays conducted in Freetown by the Company show the gold purity at 89%. Assays of black sand concentrates containing rare earths in 2009 and 2010, showed quantities of rare earths and other valuable minerals in commercially exploitable grades. Recent assays by ALS Chemex in Sparks, Nevada identified several of these rare earths contained in the black sands with gold as follows: Lanthanum, Scandium, Thallium, Cerium, Dysprosium, Hafnium, Lutetium, Niobium, Neodymium, Praesodymium, Tantalum and Zircon. Further discussion on the value added to gold recovery will be forthcoming.
Disclaimer: Sunergy is relying on information provided solely by Allied Mining and Supply, LLC and historical geological reports which it has not been involved in the preparation of. This information is not SEC Industry Guide 7 compliant and there for should not be relied on by investors for investment purposes.
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. The concession is surrounded by several operating mines and is adjacent to Newmont Mining's property. This concession has the Ofin river flowing through our eastern portion and there are numerous artisan pits ready for testing and evaluation for near term production. The Ofin river is known for good alluvial gold production. We are acquisition oriented and are considering several projects suitable for near term production.
Further information is available on the Company's website www.sunergygold.com
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 Mining Concession.
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.