Sunergy Closes Initial Sale of 27.5 tons of Stock Piled Black Sands From Pampana River, Sierra Leone Dredging Operations And Establishes A Base Price With Profit Sharing On Final Price To Produce Gold and Rare Earths Revenue
SCOTTSDALE, Ariz., Jan. 10, 2013 /PRNewswire/ -- Sunergy, Inc (the "Company") (OTC.QB: SNEY) is pleased to announce that on December 28, 2012 it sold and delivered an initial shipment of 27.5 tons of Pampana Black sands containing both Gold and Rare Earth Elements to a substantial Sierra Leone private Company for further processing and ultimate disposition. The terms of the transaction provide for a base payment to Sunergy of $1,200/ton FOB Sierra Leone, with a 50/50 split on the final price received above $1,200. The results of the Hazen Report received in August 2012 demonstrated that the Sands contained gold, titanium, zircon, tantalum and niobium and other Rare Earth Elements (See "Hazen Report" at www.sunergygold.com on home page). Further processing of the sands by the buyer could result in additional revenue for our Company in the near future from this shipment.
This transaction establishes the minimum price/ton of unrefined black sand concentrates (Base Price), which enables the Company to more accurately plan for the Pilot Plant operation to be started in the near future. Results of this initial shipment of a portion of our stockpiled material will provide valuable additional information regarding advanced recovery methods geared to recovering more marketable elements which can also be separated by adding circuits to the Pilot Plant. This work is being done at no out-of-pocket cost to the Company, except a profit share above the base price.
The size of this shipment is an amount that will provide more accurate actual recovery information than a small laboratory sample. It will also allow several tests to determine the most efficient means for economic recovery of the discreet materials that may be commercially marketable. This will enable us to determine what equipment is most useful to support our Phase 1 operation which could produce between 800-1,000 tons/ month.
Our work in 2012 consisted of some additional sampling and testing on the Pampana concession, laboratory testing to determine the content of the black sand material and how to recover it in discrete marketable products and identifying and developing available markets for these products. The gold is readily saleable at spot on a daily basis, but will be sent to a refinery prior to sale. For 2013 we will implement what we have learned through the establishment of a commercial pilot plant operation on the 140.1 sq. km. Pampana River concession. Our equipment will be able to handle up to 4 tons/hour and could process up to 2,400 tons of material/month. This year's operations will generate new material that will be added to our existing stockpile in preparation for Pilot Plant operations. We intend to expand our stockpile significantly prior to start-up of the pilot plant in order to optimize operating efficiency for a better and more representative economic result. Cash flow should begin in Q1 and 2 of 2013 and grow over the balance of the operating season and into years 2-5. The company will also be developing resources through systematic sampling and testing along the river and its benches which will set the stage for potential off-take agreements for the REEs.
Gary Houck, Director, comments, "The Company wishes all shareholders a very 'Happy New Year.' I am excited that we are starting to generate cash flow in Sierra Leone. Country Administrator Hans Strand is preparing to start our 2013 operations with Wilfred Ullrich, our head of dredging operations. Wilfred has prepared for the startup of continuous operations for the 2012-2013 mining season and is to be thanked for securing the market for the 27.5 tons and managing our Pampana operations. Our financing is proceeding as scheduled (See Press Release dated November 29, 2012) and we look forward to a prosperous 2013 for all our shareholders. We are finalizing our 2012 Annual Report for filing with the Minerals Commission in Sierra Leone."
More news will follow on this and other Company operations. Please visit the Sunergy website www.sunergygold.com and review further information such as Company Reports under Projects, Previous Press Releases and SEC filing information under "Investor Info".
About Sunergy: The Company is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license in Ghana, West Africa and the 140.1 sq. km. Pampana River Rare Earth, Gold and Diamond concession in Sierra Leone, West Africa. We are currently operating dredges on the Pampana Project.
We are both production and acquisition oriented and are considering several additional projects suitable for near term production in West Africa.
Notice Regarding Forward-Looking Statements
This current report 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, including but not limited to, any mineralization, development or exploration of the Nyinahin and Pampana Mining Concessions.
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 mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. 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 most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Steve Parent Sunergy, Inc. Investor Relations 480.326.5435 email@example.com
SOURCE Sunergy, Inc.