Sunergy Arranges Asset Backed Financing for Initial Equipment to Commence Recovery Operations of Rare Earths (REEs), Gold and Diamonds on Its 140 Sq. Km. Pamapana River Concession in Sierra Leone, West Africa
Press Release Source: Sunergy Inc. On Tuesday November 23, 2010, 7:33 am EST
SCOTTSDALE, AZ--(Marketwire - 11/23/10) - Sunergy, Inc (the
- News) reports that it has made suitable arrangements for purchase of the initial three Custom Double Sluice 8" Gold Grabber sump dredges it recently ordered from Gold Dredge Builders Warehouse of Riggins, Idaho. Recovery operations of rare earths (REEs), gold and diamonds from its 140.1 sq. km. Pampana River concession in Sierra Leone, West Africa are scheduled to commence in early January, 2011.
The terms of financing are as follows: Each dredge cost = $50,000 incl. shipping. Investor purchases and owns the dredge. Sunergy lease purchases from Investor for a total payment of $62,500 over seven months as follows: After an initial operating period of 90 days, four equal monthly payments of $15,625 to pay in full. In addition, a further $12,500 worth of restricted stock at a 20% discount to market plus a 1 year warrant at a 40% premium to market is added as a form of bonus. Should the investor elect to re-invest in an additional dredge he retains the option of the same future terms. It is expected that the first several dredges will be financed on these terms. Future dredge financing terms are subject to change without advance notice. This is not a solicitation for financing but this information is provided for disclosure purposes only.
Sunergy's wholly owned subsidiary, Allied Mining & Supply, LLC owns the exclusive international distribution rights for the commercial dredges and mining equipment from Gold Dredge Builders Warehouse. This commercial line of dredges and recovery equipment is based on the original flared sluice designed by Alan Trees and proven in the harshest environments worldwide.
The dredges have custom modifications based on field testing and sample mining by Allied Mining & Supply personnel and are being custom fitted with gemstone and heavy mineral sands recovery systems. These three 8" dredges are capable of processing about 50-60 tons per hour each for total processing of about 150-180 tons of material each hour. The plan is to deploy around a dozen or more additional dredges over the next several months.
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.
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.
Sunergy President Bryan Miller says: "I am encouraged that our asset backed dredge finance program has found early acceptance. This enables the future of our mining operations in both Sierra Leone and Ghana. Allied's existing 6" exploration dredge will be shipped to Ghana to start operations on our 150 sq. km. Offin River concession and of the next three 8" Custom dredges expected to be ordered shortly, one more will go to Sierra Leone and two will go to Ghana. We plan to deploy around a dozen dredges in each river system over the next several months. A dozen dredges allow for from 1800 to 2160 tons/hour of material processed."
Sunergy Chairman P.K. Medhi says: "We are now advancing our operations in Sierra Leone and Ghana. The dredging operation is the fastest and least expensive method to demonstrate the viability of the recoverability of our rare earths, gold and diamonds in Sierra Leone and Ghana. Just below our Nyinahin concession on Ghana's Offin River, 1.45 million ounces of gold has been recovered by dredging operations historically." (See Levich Alluvial Report on our website)
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 additional other 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.
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Investor Relations: Steve Parent