CGrowth Capital, Inc. Completes Major Milestone on Gold and Silver Mine Purchase is Significant Step in Long Term Planning for the Company
SILVERDALE, Wash., March 13, 2013 /PRNewswire/ -- CGrowth Capital, Inc. (Pink Sheets: CGRA) (the "Company") 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."
For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining. The processing of metal ore mining is a multi-billion dollar market opportunity which is capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold and silver to market. CGrowth Capital will focus on acquiring or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining operations.
CGrowth Capital, Inc.
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
SOURCE CGrowth Capital, Inc.