Sunergy Closes Acquisition of Allied Mining and Supply, LLC's Large Scale Rare Earth Element (REEs) Deposit Containing Gold and Diamonds in Sierra Leone, West Africa
Press Release Source: Sunergy Inc. On Thursday October 28, 2010, 7:07 am
SCOTTSDALE, AZ--(Marketwire - 10/28/10) - Sunergy, Inc (the
- News) (the "Company") reports that the planned acquisition of Allied Mining and Supply, LLC (Nevada) was closed today and Sunergy now owns 100% of Allied and its worldwide assets, which consists of the 140.1 sq. km. Pampana River concession in Sierra Leone, West Africa containing Rare Earth Elements (REEs) and gold which may be recovered by simple gravity methods.
Assays of heavy black sand concentrates containing rare earths (REEs) 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 heavy black sands along with gold as follows: Lanthanum, Scandium, Thallium, Cerium, Dysprosium, Hafnium, Lutetium, Niobium, Neodymium, Praesodymium, Tantalum and Zircon.
Plans are underway to finance operations in Sierra Leone. We expect to close on such financing within the next several weeks. Initial production of REEs and gold will begin within 90 days of closing the financing.
Substantial concentrations of gold have also been determined to be contained in the concession. Data indicates gold concentrations ranging from 1 to 18 grams per tonne of material. Fire assays conducted in Freetown, Sierra Leone, indicate gold purity to be 89%. Over 500,000 ounces are contained in reports in the north 28% of the 140 sq. km. concession.
In addition to the Pampana River concession, Allied is a licensed vendor of alluvial mining equipment for Africa and has additional acquisition mining targets available for Sunergy to acquire in Sierra Leone in the immediate future.
Bryan Miller, CEO of Allied, will join the Sunergy Board of Directors, and Dale Bourassa of Allied will serve on the Sunergy Advisory Board. Mr. Edwin MacKnight of Napa Valley, CA and London, England has served as advisor to Allied and has accepted appointment to Sunergy's Advisory Board.
More information on the above individuals will be forthcoming.
CONSIDERATION PAID TO ALLIED:
The terms of the acquisition required Allied to deliver 100% of its ownership to Sunergy in exchange for: $18,000 US Cash, 100,000,000 restricted common shares and 100,000,000 share purchase warrants enabling the purchase of a further 100,000,000 restricted common shares at $0.0025 with an additional 100,000,000 share purchase warrants enabling the purchase of a further 100,000,000 restricted common shares at $0.005. All warrants allow for purchase within 1 (one) year from closing.
The purchase agreement will be filed in an upcoming 8-K to be filed with the SEC and may be viewed on the Company's website www.sunergygold.com under the SEC Filings heading. Additional information on Allied and the Company's planned new operations will be updated on the website as soon as possible.
Sunergy Chairman P.K. Medhi says: "Since retiring all our debt earlier this year, it is a milestone event to be able to include the Allied personnel and assets in our mining portfolio in exchange for equity in our Company that is attached to future financing through the warrant exercise.
To achieve this without new debt enables the Allied group to become a relevant part of our existing publically listed and traded Company by adding to the value of the Company's assets and its in-ground mineralized material. This is all accretive to shareholder value. Our non-dilutive approach to equipment financing should bring additional value by enabling us to achieve production of gold and rare earth elements (REEs) in the near term."
The following is a brief excerpt from an article published in the UK's "The Independent" that sheds light on the REEs global situation today:
"Neodymium is one of 17 metals crucial to green technology. There's only one snag -- China produces 97% of the world's supply. And they're not selling."
Britain and other Western countries risk running out of supplies of certain highly sought-after rare metals that are vital to a host of green technologies, amid growing evidence that China, which has a monopoly on global production, is set to choke off exports of valuable compounds.
Failure to secure alternative long-term sources of rare earth elements (REEs) would affect the manufacturing and development of low-carbon technology, which relies on the unique properties of the 17 metals to mass-produce eco-friendly innovations such as wind turbines and low-energy light bulbs. Worldwide, the industries reliant on REEs, which produce anything from fibre-optic cables to missile guidance systems, are estimated to be worth £3 trillion, or 5 per cent of global GDP.
Once extracted and refined, the rare earth metals can be put to a dizzying range of hi-tech uses. Neodymium, one of the most common rare earths, is a key part of neodymium-iron-boron magnets used in hyper-efficient motors and generators. Around two tonnes of neodymium are needed for each wind turbine. Lanthanum, another REE, is a major ingredient for hybrid car batteries (each Prius uses up to 15kg), while terbium is vital for low-energy light bulbs and cerium is used in catalytic converters.
China, whose mines account for 97 per cent of global supplies, is trying to ensure that all raw REE materials are processed within its borders. During the past seven years it has reduced by 40 per cent the amount of rare earths available for export... for a more comprehensive discussion please see Sunergy's PR published Monday, October 25, 2010.
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 production and acquisition oriented and are considering several projects suitable for near term production in West Africa.
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.