AUSTIN, Texas, June 17, 2016 /PRNewswire/ --
Preston Corp (OTCPK: PSNP) ("Preston Corporation" "PSNP" or the "Company") today is very pleased to announce that the Company has signed an agreement to acquire a gold production royalty from an Arizona mine through its exclusive agent Western Mine Development LLC, ("Western").
The project is an alluvial placer mine that has just received an approved mining permit from the regulatory agency allowing for the commencement of commercial gold production, which when fully implemented is forecast to generate $28.8 million a year EBITDA at a conservative pricing of $1,250 per ounce gold.
The project is a low cost, high grade placer deposit which has an all in production cost per ounce of gold of $300. The mine meets all of Preston's requirements for financing and acquisition. Preston is confident that it will begin receiving its royalty stream of production revenue in Q4 of this year.
Company President Andrew Stack states "the Arizona gold acquisition is a great achievement for the Company as it is the second project in our growing portfolio of gold mine operations with permitted production that will deliver our desired internal rate of return. We look forward to working with the mine ownership group to ensure timely delivery of Preston's royalty thus meeting our corporate goals and the added valuation to the shareholders."
About Preston Corp (OTCPK: PSNP)
Preston Royalty's mission is to develop the Company into a leading financial service provider, specializing in royalty financing for mining operations with the intent to realize large, continuous profits from ongoing economic interest in the production and future production of mining properties. Preston Royalty is gold focused but will create a diversified portfolio of royalties and streams wherever the value can be found regardless of commodity, geography, revenue type or stage of project. Preston Royalty is not an operator and therefore has none of the associated risks or capital requirements of mine operation.
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 PSNP, 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
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To find out more about Preston Corporation (OTCPK: PSNP), visit our website at http://www.prestonroyalty.com
SOURCE Preston Corp