Lone Star Gold, Inc. Announces Agreement on Mexico-Based Mine Tailings Project

Submitted by John Ganjei on Wed, 2012-01-11 18:56

Wed, 2012-01-04

 

 

 

 

   Lone Star Gold, Inc. is thrilled to announce that the company will move forward with signing a Definitive Agreement to acquire an undivided 65 percent interest in the San Antonio del Potrero mine tailings project. The agreement will be signed at the beginning of January 2012.
   A letter of intent committing to acquiring an undivided 65 percent interest on the Tailings Project, located in the city of Hidalgo Del Parral in Chihuahua, Mexico, was originally signed on 28 November 2011. The project represents a resource of 1.2 million tons of mine tailings which shows potential for Silver recovery and additional bi-products including Gold, Zinc, and Lead.
   The President of Lone Star, Daniel Ferris, was looking forward to the opportunity. He said that the opportunity was a great fit for the company and aligned well with the company’s goal of rapidly becoming a mid-tier producer in the short term. After the Definitive Agreement is signed in mid-January, the company will be in a great position to begin 6-8 years of production as soon as February 2012.
   The Definitive Agreement details how a total of 600,000 shares of Lone Star’s common stock will be incrementally transferred over a one-year period. The shares will carry current and appropriate legends in accordance with U.S. Securities laws. The agreement also outlines the cash commitments for initial and secondary project work/equipment/plant construction for the first two years. After the processing of the project’s estimated 1.2 million tons of mine tailings have been processed, Lone Star will forfeit its 65 percent interest in the Mexican company. This will release Lone Star from any further obligations with the project.
   The project is estimated to have 1.2 million tons of mine tailings from previous activities over the past century. An agreement is in place to take 100 tons per day to a processing plant 20 minutes away in Parral for the first 4-6 months of the project. After the initial 4-6 months, throughput is likely to be increased to over 200 tpd for the remainder of the year.