Sunergy Clarifies Recent Press Release Issued By Sierra Leone National Minerals Agency
Press Release Source: Sunergy Inc. On Monday December 1, 2014
Sunergy, Inc. ("Sunergy" or "the Company") (OTC Pink: SNEY) (SNEY), was made aware of a National Minerals Agency (“NMA”) press release published on November 27, 2014 in response to an anonymous inquiry about Sunergy’s mining activities in Sierra Leone. In this press release they stated that Sunergy, Inc. does not maintain any mining licenses in Sierra Leone. In our recent update from November13, 2014 we indicated we had a new license area with substantial gold deposits that we were starting operations on, yet NMA could not find corroborating evidence.
To be clear, Sunergy, Inc., a Nevada corporation listed and trading on the OTC Markets, Pink Sheets, has never itself operated in Sierra Leone or anywhere else in Africa. We always conduct our operations through wholly owned local corporations properly registered in their respective countries. So it is correct that they would not find Sunergy, Inc. registered in Sierra Leone. The fact is, Sunergy Inc. began operations in Sierra Leone in October 2010 by acquisition of 100% of Allied Mining and Supply Limited, a duly registered Sierra Leone corporation, which owned the Pampana Mining concession. This was an Exploration License which did not allow for any minerals to be sold without acquiring further mining licenses which became quite expensive.
In our December 3, 2013 Press Release we stated the following:
"Management has dramatically changed its operating plan from an exploration model to a cash-flow driven operation. Operating under exploration licenses requires money to be spent without the opportunity to sell products recovered in the exploration phase. A distinct lack of exploration funding industry wide coupled with investor interest being more focused on cash flow today than sometime in the future has encouraged Management to adopt this change. Accordingly, we have entered into support agreements in both Sierra Leone and nearby Liberia to combine our equipment and operating expertise with local artisanal miners to assist in the rapid development of otherwise hand driven operations only. Two benefits occur immediately, one for the local miners who gain support on the recovery of their discovered gold, diamonds and black sands and one for our Company, having the exploration phase already completed and gaining the opportunity to immediately begin operations in already proven lands and rivers which are capable of producing economic quantities of gold, diamonds and black sands containing the rare earth elements. Management believes this enables the company to enter into immediate and sustainable cash flow which is accretive to shareholder prosperity."
Again, on May 27, 2014 our Press Release stated:
"Sunergy had entered into an agreement which expands its diamond and gold mining operations into the famous Kenema diamond district in Sierra Leone which covers a 7 mile length of the Sewa River. Both dredging and land based operations will be undertaken enabling operations to continue year round. This particular area has never been mined by any large or even small scale mining companies, because the majority of land is owned privately by the residents of the Chiefdom and over the years they have preferred to mine this area themselves. Because of our established relationships with landowners there, we have been invited to provide support to the local artisanal miners who know where the best diamonds and gold deposits are located."
Therefore it is the local Artisinal Miners that have the licenses and Sunergy, through our local operating company, enters into support or sponsorship arrangements with the local license holders. They enjoy a negotiated and agreed upon percentage and we pay them their portion which has become an accepted policy in Sierra Leone.
In our November 13, 2014 press release we state:
“Sunergy, Inc. is pleased to announce that on November 6, 2014, we were informed that the issuance of the license submitted October 15, 2014 by our Sierra Leonean management team, on the .005 Sq. KM of known gold bearing property has been approved and finalized by the Government of Sierra Leone National Minerals Agency.”
We are pleased to have achieved this milestone, as projected in our October 6 press release:
"Local management is diligently seeking the appropriate locations and proper licensing to begin our dredging operations in Sierra Leone as well. We previously stated a substantial quantity of gold was discovered prior to the September rains. Our efforts are designed to develop this area as soon as possible, now that the rains are subsiding. Our local management is currently working toward placing this area under license."
The Sierra Leone License holders, as part of our Team, will visit the National Minerals Agency today to further clarify our operations in Sierra Leone. Management wants to assure shareholders that while there may be a misunderstanding with the NMA regarding our operations, we are not operating outside the mining laws or accepted local practices and we have operated in good standing through our subsidiaries since 2010.
What is also concerning is that this action appears to be a strategic move where an individual(s) who know better have attempted to misuse a local government agency by asking questions that they already knew the answers to would provide a negative and damaging result to Sunergy, Inc. We will be investigating this matter thoroughly and will pursue resolution to the fullest extent of the law.
The Mining Ministry is a different organization than NMA and knows Sunergy and its subsidiaries well. NMA was organized recently to assist in the management and operations of mining companies in Sierra Leone and we have had no dealings with them to our knowledge to date.
Finally, to further our efforts to produce cash-flow in 2014, President Garrett Hale is in New York today to finalize matters on our first export parcel of diamonds from Sierra Leone licensed operations. Our building partner GBG has additional news to be shared in an upcoming press release.
About Sunergy: Sunergy Inc. (OTC Pink: SNEY) (SNEY), a Nevada corporation, is a junior mining company headquartered in Scottsdale, Arizona. The Company has made a transition from an exploration only company to a company currently focused on production and cash flow. We now have four dredges operating, two in Sierra Leone and two in Liberia We have also acquired a wash plant and loader capable of handling between 50 to 350 tons per hour of diamond and gold bearing gravels. In addition to our core mining activities, the Company has developed considerable relationships over the past four years which has enabled the procurement of non-mining partnerships and agency agreements with major international businesses representing Airport Security, Affordable Housing projects and Solar energy projects in the six West Africa Countries of Ghana, Sierra Leone, Liberia, Nigeria, The Gambia and Senegal. For more information, please visit www.sunergygold.com.
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 or cash flow from Sierra Leone and Liberian 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.