DALLAS, Nov. 21, 2012 /PRNewswire/ -- Southridge Minerals, Inc. (PINKSHEETS: SRGE) ("Southridge" or the "Company") is pleased to announce a shareholder update and releases positive events at its "El Horconcito" Gold property, in the state of Durango, Mexico. Due to numerous shareholder inquiries following the recent announcement, "Southridge Evaluates Strategic Alternatives for Cinco Minas Property and Reports Advanced Discussions with Major NYSE Listed Metal Producers concerning Cinco Minas", the Company would like to update its shareholders.
The Company and its advisers are currently evaluating alternatives and are in advanced discussions with two major NYSE listed metal producers regarding their Jalisco mineral concessions and properties. One of the firms has already signed preliminary documents for the full acquisition of the Cinco Minas property. Southridge would like to give its shareholders an indication of how the funds will be used in the event a full sale is affected for its Cinco Minas Property. The company would like to state that shareholders will definitely participate in a direct, immediate, tangible benefit of such sale (i.e. special cash dividend for 20% of the proceeds from the sale of the Cinco Minas Property or a flat 20 cents per share special one-time dividend). Southridge and its Board of Directors can only state at this time that the amount being discussed is in the range of $550,000,000 and $600,000,000 for its Cinco Minas Property. Due to certain reasons the company cannot fully disclose exact details at this time. However the company felt it was very important to release some details to explain what's in it for shareholders and what the company and its Board of Directors are discussing as this time.
Furthermore the cash from such sale would allow Southridge to ramp up exploration and mining with its portfolio of mineral properties located in several world-class mining regions of Mexico. The properties include the past producing and flagship property Cinco Minas, along with the Gran Cabrera, Los Compadres, La Esperanza, La Canita and El Horconcito. With metal prices forecasted to remain buoyant, properties that offer significant potential for Gold and Silver occurrence, a diverse management team, and a strong cash position, Southridge Minerals is well positioned to develop its opportunities and build shareholder value.
Additionally, a major gold producer with a satellite office located in Guadalajara has contacted Southridge with a joint partnership interest in Cinco Minas and the companies are engaged in serious discussions at this time. Should Southridge feel it's more beneficial for the Company to sign a Joint Partnership with this major Gold producer instead of selling its Cinco Minas Property, then Southridge would look to have its shareholders benefit from this transaction as well. The Company and its board of directors are currently discussing the possibility of a quarterly cash dividend to its shareholders from a certain percentage of earnings made from such Joint Venture. Southridge is in negotiations with this major gold producer to inject an amount of roughly $680,000,000 into this Joint Partnership in order to help the Company aggressively mine Cinco Minas and it's up to $5 billion in Gold and Silver reserves. The size of this project is rather large and that's why the company is in serious discussions with a NYSE major producer because it feels this will allow Southridge to aggressively mine and explore the property at a much faster rate therefore leveraging the price of Gold at today's market value.
Cinco Minas, the Company's flag-ship mineral property, has a world-class confirmed gold and silver resource of 235,000 oz. gold and 23.3 million oz. silver with 80% of the known vein system yet to be tested. Today's market value of the confirmed resource at Cinco Minas is well over $1 Billion USD (this is only 20% of Reserves), prior to the completion of further planned exploration to expand the resource. Southridge expects that the process could be completed within approximately 4 weeks. There can be no assurance that any transaction regarding the Cinco Minas property will be completed. The company does not intend to disclose developments with respect to the progress of its strategic alternatives review process until such time as the Southridge board of directors approves or completes a transaction or otherwise determines that further disclosure is appropriate.
Southridge would also like to update its shareholders on its newly acquired 100% interest and assets comprising the mineral concessions in its "El Horconcito" Gold property, in the state of Durango, Mexico. The trenching and sampling program that was conducted during the month of October returned exceptional results. The Company has now initiated a diamond-drill program set out to broaden the Gold resources at El Horconcito.
El Horconcito is located in the San Dimas mining municipality of Durango, close to the Sinaloa border. The company and its board of directors feel El Horconcito is a very valuable asset to Southridge and its shareholders because within this same region, Primero Mining operates the San Dimas Mine, a producing gold and silver asset that was purchased from Goldcorp in 2010. The San Dimas Mine has probable reserves of over half a million ounces of gold and 31.8 million ounces of silver. Part of the prolific Sierra Madre Occidental gold belt, the world's largest epithermal precious metals belt, San Dimas is home to several world-class mining operations. Historical production in the San Dimas mining region is estimated to be over 11 million ounces of gold and 582 million ounces of silver.
About Southridge Minerals, Inc. (PINKSHEETS: SRGE)
Southridge Minerals, Inc. is a U.S.-based mineral exploration company dedicated to acquiring and developing mineral resources in geologically permissible and politically stable areas of the world. The Company seeks out early stage opportunities with good mineralization indicators that exhibit significant blue-sky potential. Southridge pursues and advances these projects that are or will be of interest to mid-size and major producers. By forming alliances on individual projects, the Company expects to develop its interests in mines operated by its partners, allowing it to continue to build value through continued exploration. Southridge is currently focused on projects in Mexico.
What sets Southridge apart is its vast experience in Mexico and the knowledge of the geological conditions and formations pertaining to known large gold deposits that have received very little attention to date. This comparative advantage, combined with a specific geographical and mineral focus, will allow for more efficient asset and income growth in the future for the benefit of shareholders' investments.
Mobile Site: www.srge.mobi
Although the Company believes that the forward-looking statement of beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's published current and periodic reports.
SOURCE Southridge Minerals, Inc.