ITEC Acquires Montana Gold Production--Cash Flow To Commence In June
SCOTTSDALE, Ariz., April 1, 2014 /PRNewswire/ -- Intertech Solutions Inc. (OTC: ITEC) ("Intertech Solutions Inc.," "ITEC" or the "Company") is pleased to report that it has executed a definitive Gold Streaming Agreement with CMI Associates, Inc. Under the terms of this agreement, ITEC has acquired an ongoing interest in the Keen Placer Mine, a producing, alluvial gold project located near Helena Montana.
The Keen Placer Mine currently requires funding to expand daily throughput capacity and efficiency upgrades to the existing plant and site facilities. ITEC, through its gold streaming agreement model, will provide up to $500,000 USD to CMI to ensure the mine capacity is increased 800 cubic yards or 1,100 tons of gold bearing material per day while reducing processing costs per tonne. In return, ITEC will receive 75% of net revenue until payback of the original investment and then 25% of all net revenue until the resource is fully depleted. The Keen Placer Mine will commence the 2014 production season prior to June 1st, thus establishing ITEC with cash flow from gold sales before the end of the second quarter.
The Keen Placer Mine has an initial 200,000 tons of immediately accessible gold bearing gravels at an estimated grade of 0.5 grams per ton (0.016 ounces per ton). When this stock pile is fully processed over the 180 day season, we anticipate recovery at 3,200 ounces of gold production or $4,000,000 at $1250 per ounce gold. ITEC has calculated less than a 2 month payback period on its $500,000 and an additional $800,000 in net profits for the inaugural season. The mine has a historic recovery rate in excess of 98% all gold ore that was confirmed by independent engineering analysis last season.
In addition to production from the Keen Placer Mine, by late November, we will have the WPE Mine in Arizona commissioned and in full operations further increasing cash flows to the Company.
Intertech Company President, David Naylor stated that "the addition of the proven low risk Keen Placer Mine to ITEC's growing portfolio of gold streaming assets not only increases our near term revenue, but more importantly provides a strong base of operations to further leverage our ability to acquire additional gold producing properties."
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: 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.
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To find out more about Intertech Solutions Inc. (OTC: ITEC), visit our website at www.itecgold.com
SOURCE Intertech Solutions Inc.