LAS VEGAS, Jan. 24, 2013 /PRNewswire/ -- Maxam Gold Corporation (Pink Sheets: MXAM) http://www.max-amgold.com, a leading gold mining and development company, announced today that Pembina Limitada S.A. and Maxam Gold Corporation have entered into a joint venture agreement with Comanche Capital, Inc. to purchase Nicaraguan gold.
Charles Langrill, President and CEO of Maxam Gold Corporation, stated: "Maxam Gold Corporation and Pembina Limitada, S.A. a Nicaraguan Corporation, which is a wholly owned subsidiary of Maxam Gold Corporation, have entered into a Joint Venture Agreement with Comanche Capital, Inc. to purchase gold from the indigenous people of Nicaragua. Pembina Limitada S.A. has a unique relationship with the indigenous people of the rainforests of Nicaragua, which allows the Company to purchase gold at a discount of the market price. Pembina Limitada S.A. can purchase gold at reduced prices due to the remoteness of the region, where the indigenous people are mining and the difficulty of them reaching a qualified buyer. Nicaragua is a 3rd world country with widespread poverty so no local buyers exist that can consistently purchase gold at or near current prices. The travel time from these areas to the capital of Nicaragua, Managua, is sometimes 10 hours or more so the local people are happy to sell gold at a discounted price. The discount is usually 15 to 22%. Maxam-Pembina will start buying gold at the one kilo level at the price of $40,000 per kilo and selling for $50,582 averaging a 22% margin. This will quickly move up to 12 kilos a week, which represents $607,000 per week in potential revenue, with the next goal being 24 kilos per week. These profits will allow the Company to start the mine operations and to possibly increase the profit margins to 200%.
The Joint Venture will provide the capital to buy gold and ship it via Fedex to the US for processing and sale. The major advantage of Maxam Gold Corporation and Pembina Limitada S.A. is the ability to purchase the gold at an attractive price and return a significant profit to the company and the joint venture investors. This will provide cash flow and additional capital needed to start operations at the concession sites."
Gold prices have skyrocketed over the past few years and the end is not in sight. The increasing price of gold will only add to the overall profitability of the company.
About Maxam Gold Corporation.
Maxam Gold Corporation is a leading gold mining and development company based in Nevada with claims in the western United States and Nicaragua. Maxam Gold Corporation was formed in 1975 and has been involved in the mining and exploration of gold since 1985. The current expansion in the price of gold has revitalized the company and its policy of acquiring gold production through acquisition of gold producing companies and providing the capital to expand the profitability and production of current operations.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.The words or phrases "would be," "would allow," "intends to'" "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
SOURCE Maxam Gold Corporation