Mar 14 2013
CGrowth Capital, Inc. is pleased to announce that it has initiated a major milestone in the execution of its business plan by signing a Purchasing and Sale Agreement for the Deer Trail Mine in Eastern Washington. The 40 acre fee simple parcel contains three (3) historically active mines and is grandfathered as an active mining site.
The Deer Trail Mine is the location of the Company's originally announced joint venture agreement to process 170,000 tons of head ore material. The transaction once complete will supersede the joint venture agreement and now gives the Company access to an estimated 200,000 tons of surface material. Ownership of the property will set the stage for onsite development of operations as well as future development and extraction of the subterranean material within the property. In addition to the mines and ore material, the site is an approved operational mine/mill site with three (3) approved tailing ponds which will help to jump start operations.
"To say we are excited is an understatement," said Bill Wright , CEO of CGrowth Capital, Inc., "We have been working for many months to create a win-win situation for both the Company and the mine owner – and the time has finally come. With ownership rights to the property, we can now proceed with building out our concentration plant for long term production."
In keeping with our fiduciary responsibilities, shareholders should be pleased to learn that the Company was successful in all aspects concerning the crafting of this purchase. CGrowth Capital, Inc. was prudent in capping the royalty payments; this combined with the favorable purchase price and terms will position the company with a stronger balance sheet and higher margins in the longer term, thus producing shareholder value. Details of the transaction will be provided upon the closing.
Mr. Wright continued, "We are extremely pleased with the deal structure for this purchase. The seller could see the value in cooperating with us on favorable terms by taking an equity position with us. This will allow us to utilize precious cash towards production and growth rather than extended debt payments. In the end, both parties win by our ability to move into higher production earlier. The fact that we were able to cap the royalty payment will be a big win for long term shareholders."