Agreement provides a significant step toward commercial production for
mining properties owned by Clifton Mining Company and its subsidiary,
Woodman Mining Company
SALT LAKE CITY, July 29 /PRNewswire-FirstCall/ - Clifton Mining Company, a publicly traded corporation with headquarters in Utah, today announced that it has entered into an agreement with Desert Hawk Gold Corp., a Nevada corporation, to explore, evaluate, develop and mine mineral resources from properties owned by Clifton and its subsidiary Woodman Mining Company.
Under terms of the Clifton-Desert Hawk agreement, Desert Hawk has paid $250,000 in cash and is transferring 500,000 Desert Hawk shares to Clifton Mining. Desert Hawk will also pay sliding-scale net smelter royalties that vary according to the price of the metals. Specific royalty percentages of the agreement are proprietary. Desert Hawk will use its sophisticated equipment and managerial expertise to operate the Kiewit claims, the Cane Springs claims and other target sites.
Clifton and its former strategic partners have spent more than 15 years and more than $10 million in identifying precious metal resources in the historic Clifton Mining district. In July 2009, Clifton completed a buyout agreement which granted Clifton full and exclusive rights to the Kiewit and Cane Springs claims.
"We are delighted with the opportunity to work with Desert Hawk in developing our rich mineral resources, and have every confidence that this partnership will bring value to Clifton and its shareholders," said Ken Friedman, president of Clifton Mining "Rick Havenstrite and Stuart Havenstrite of Desert Hawk have acquired a wealth of operating experience in mining production, and are an ideal leadership team from development to commercial production efforts."
Rick Havenstrite holds a degree in mining engineering from the University of Nevada, Reno, and has run numerous heap leach operations. Stuart Havenstrite is an accomplished geologist and industry leader, who has led several publicly-traded and private mining companies, and worked as chief geologist for a number of other organizations.
Clifton has already filed environmental impact studies for its mining properties with all relevant state and federal agencies, and is in the process of obtaining all necessary permits and approvals to engage in comprehensive mining operations. Desert Hawk anticipates that the venture will be in commercial production by Q3 2010.
About Clifton Mining Company
Clifton trades on the U.S. OTC: (CFTN). For additional information, contact Dr. Ken Friedman, president, at 303-642-0659; or Keith Moeller, vice president, at 801-756-1414, ext. 100, or visit the company website at www.cliftonmining.com.
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