TORONTO, June 26 /CNW/ - Win-Eldrich Mines Limited (WEX-TSXV) today
announced that at its annual meeting of shareholders held on June 25, 2009,
Mr. Peter Winn was elected a director. Mr. Winn, based in Colorado, has been a
consulting geologist to the Corporation for many years and has been associated
with the Ashdown property for over twenty years.
Following the precipitous decline in the price of molybdenum oxide last
fall, operations at the Ashdown property were halted and placed on a care and
maintenance basis. As a result of the recent increase in molybdenum oxide
prices to the US$10.50 per pound range, and completion of the purchase of the
remaining interest in Ashdown, some employees have been recalled and limited
mining and milling operations have recommenced.
As previously announced, in May, 2009, the Corporation's wholly-owned
subsidiary, Win-Eldrich Gold, Inc. completed the acquisition of the remaining
interest in Ashdown Project LLP for US$5.3 million, paid by issuing a limited
recourse secured promissory note in this amount. Since then, the Corporation
has been working to establish management and financial systems at Ashdown.
Payments on the note do not commence until April, 2010.
Current production at Ashdown is being sold to offshore purchasers. It is
hoped that receipts from current sales will be sufficient to maintain limited
production while past claims arising from the mine's operations and shut down
last year are settled; however, there can be no assurance that current limited
production will continue. The recent increase in the world price of molybdenum
oxide may not be sustainable.
On June 25, 2009, the Corporation granted options to purchase 25,000
shares at $0.16 each to each of the four current Directors and options to
purchase 75,000 shares at $0.16 each were granted to each of the six key
Ashdown Project LLP employees, including Perry Muller, CEO of the Corporation,
and Jeff Gall, CFO.
Perry Muller, CEO, stated that he welcomed long time associate Pete Winn
to the Board and hoped that limited production at Ashdown could continue in
order to settle all outstanding claims as Ashdown reaches cash positive
This news release includes certain forward-looking statements concerning
the future performance of our business, its operations and its financial
performance and condition, as well as management's objectives, strategies,
beliefs and intentions. Forward-looking statements are frequently identified
by such words as "may", "will", "plan", "expect", "anticipate", "estimate",
"intend" and similar words referring to future events and results, including
in respect of the continuance of operations at the mine and return to
profitability of the mine. Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking information is
inherently uncertain and subject to a variety of assumptions, risks and
uncertainties, including the speculative nature of mineral exploration and
development, fluctuating commodity prices, competitive risks and the
availability of financing, as described in more detail in our recent
securities filings available at www.sedar.com. Actual events or results may
differ materially from those projected in the forward looking-statements and
we caution against placing undue reliance thereon. We assume no obligation to
revise or update these forward-looking statements, except as required by
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Perry Muller, President and Director of
Win-Eldrich, at (402) 435-7206