LAS VEGAS, Feb. 1, 2013 /PRNewswire/ -- Maxam Gold Corporation (OTCPINK: MXAM) http://www.max-amgold.com, a leading gold mining and development company, announced today that a Canadian Company with an adjacent concession has started production and is willing to process material on a contract basis for Pembina.
Charles Langrill, President and CEO of Maxam Gold Corporation, stated: "An adjacent concession has taken delivery of a portable mill and processing equipment. This equipment will be up and operating within 60 days and has the capacity to process 300 metric tons per day. The company has offered to process material for Pembina Limitada on a contract or fee basis. This opportunity has enormous implications for Pembina Limitada, S.A. and Maxam Gold Corporation. This will allow for Pembina Limitada to begin production with a smaller up front investment in equipment upgrades and infrastructure, and shorten the time to get into full production. Now Pembina can focus short term investment on equipment that is needed to move the overburden and access the gold bearing material. With this opportunity, Pembina will now have the ability to show it's true potential, while generating revenue."
Pembina Limitada, S.A. will start processing 100 to 150 metric tons per day and will increase production as it's own equipment is delivered to the concession. This will result in revenue of approximately $700,000 per month in gold sales at an estimated cost of $250,000, with a projected profit margin of 64%, or $450,000 per month. Overall profitability for the company will increase as equipment is acquired and put into production. Maxam believes the price of gold will continue to increase because of the overall debt problem in the US and Europe.
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 productions company 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