SCOTTSDALE, Arizona, January 8, 2016 /PRNewswire/ --
Intertech Solutions Inc. (OTCPK: ITEC) ("Intertech Solutions Inc.," "ITEC" or the "Company") The Company today wishes to announce that it has commenced negotiations to obtain an improved agreement with West Port Energy, LLC on the WPE Mine in Quartzite Arizona.
Within the proposed enhanced agreement, ITEC is to receive from the first day of production a 20% net revenue interest in return for having paid in $4 million. To date $2.75 million has been paid towards being fully vested. The original agreement required ITEC to have paid in a total of $6 million for a 25% revenue interest or $240,000 for each 1% of revenue from the WPE Mine. The proposed agreement will have a reduced amount of $200,000 contributed per 1% of mine revenue. Additionally further dilution to ITEC's capital structure is mitigated by the proposed agreement due to reduced amount of shares required for issuances to facilitate private placements.
The revised agreement reduces the cost to ITEC and secures its revenue interest at a time when many mining operations are being shut down due to poor demand and low commodity prices. This also proportionately reflects current valuation of the project and the total required capital to bring the operation into full scale ongoing commercial production. ITEC is confident in its ability to raise the reduced additional capital required to fully vest, and will be participating in the future cash flow from the WPE Mine for the anticipated mine life of the deposit.
Upon meeting its obligation and fully vesting, the Company will have secured the ongoing 20% interest in all gold production for the total investment of $4.0 million. With the estimate of over 100,000 ounces contained the initial mine block from the first 1,000,000 tons of gold bearing gravels at a grade of 3 grams per ton, the anticipated net value to ITEC would be $15 million at current gold prices of $1,090 per ounce with a net margin per ounce of $750 after operating costs. ITEC could now possibly expect to receive over $3.8 million per year from revenue over a minimum 4 year period, yielding an internal rate of return (I.R.R.) of 87%
In other corporate matters, Rob McIntosh has resigned effective January 8, 2016 from his position as President, CEO and Director. Mr. McIntosh will now focus his efforts with WPE, in a strategic move for both ITEC and WPE to further develop WPE's acquisitions while maintaining a conduit for future investment opportunities being directed to ITEC. To best optimize the upcoming production phase Mr. Craig Wiita has now been appointed as President and to the Board as a Director. Mr. Wiita is an experienced miner and will liaison and co-supervise with the Claim Owner, WPE to ensure cost effectiveness, optimal throughput, and grade control to enhance ITECs percentage ownership of the gold and overall profitability of the West Port Gold Mine. Mr. David Naylor will continue in his existing capacity as C.F.O. for the Company.
About Intertech Solutions Inc. (OTCPK: ITEC)
Intertech Solutions is a fully integrated, gold project finance, management and services consulting Company that provides development capital, engineering, project supervision and technical management to gold projects. The Company operates from its offices in Scottsdale, Arizona. Visit us at: http://www.itecgold.com
Notice Regarding Forward-Looking Statements
This news release 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. Such forward-looking statements include, among other things, scope and type of consulting services provided by ITEC, use of proceeds, future acquisitions, success of projects, growth and strategic plans. 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 petroleum exploration and development stage exploration companies. 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 annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
Intertech Solutions Inc.
To find out more about Intertech Solutions Inc. (OTCPK: ITEC), visit our website at http://www.itecgold.com
SOURCE Intertech Solutions Inc.