$ 12 Million Financing Announced For Clifton Properties
Clifton Mining Company Inc. (OTC : CFTN)
ALPINE, UT, Feb. 22, 2012 /PRNewswire/ - Shoshone Silver/Gold Mining has just announced funding of $10 million in equity plus a $2 million loan to Desert Hawk Mining Co. We regard this as a significant positive in shoring up Desert Hawk's ability to bring the Clifton projects into production. While a link to the full announcement by Shoshone is provided below, we would call attention to the following:
First, with respect to the Kiewit Project " Desert Hawk is nearly complete with the permitting ... and believes the permits required to commence construction and operation of this mine will be granted within the year. The project is expected to produce 15,000 to 20,000 ounces of gold equivalent for six years." Clifton will receive a 5% net smelter return on this production.
Second with respect to the Clifton Shears silver project, "The newly formed joint venture also plans on focusing exploration and development efforts at the Clifton Shears silver project where over 4 million ounces of oxidized silver resource has been identified... However, the full extent of the sulfide silver system is unknown as it consists of at least ten parallel to sub-parallel veins which have been traced on the surface for a distance of over two miles... The joint venture partners believe this silver system could be dramatically expanded in size and represents a near term silver production opportunity as well as delineation of a very substantial silver resource." At current metals prices Clifton will receive a 15% net smelter return on precious metals produced from this project.
Third, Shoshone added: "We believe that this property has the potential for very significant early production and cash flow from the permitted mill, as well as from the gold heap leach. Additionally, multiple exploration opportunities for expanding the gold, silver, copper and other mineral resources are abundant. In sum it would be very difficult to find a comparable opportunity in the western United States. Mining properties of this quality and grade were discovered and mined long ago."
Clifton trades on the U.S. OTC: (CFTN).
Note: Any statements released by Clifton Mining Company that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward looking statements invoke risk and uncertainties that may affect the company's business prospects and performance.
SOURCE Clifton Mining Company