AUSTIN, Texas, May 3, 2016 /PRNewswire/ --
Preston Corp (OTCPK: PSNP) ("Preston Corporation" "PSNP" or the "Company") today is pleased to announce that the Company, through its agent Western Mine Development LLC, ("Western") has executed a preliminary lease agreement on a gold mine in California. The project is a placer mine and historic gold producer located in the Sierra Nevada Mountains north of Sacramento.
Preston will fund a minimum expenditure of $250,000 this season on the project that has permitted status to proceed with commercial production. The Company anticipates a total capital cost of between $4 and $5 million to bring the project into production. The Company will make a production decision by August 31st 2016
Western will act as operator on the project, which is estimated to have produced 4,000 ounces to date on a small scale mining basis. Preston has reviewed the potential of in situ pay gravels and concurs with Western that the project has the potential to contain 100,000 ounces of gold. This preliminary estimate will be verified this season via an evaluation program with the goal of attaining a third party mineral resource by a Qualified Person under N.I. 43-101.
The Company additionally believes the project has the potential to deliver under the royalty agreement a 50% return on investment per annum.
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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SOURCE Preston Corp