TORONTO, April 28 /CNW/ - Win-Eldrich Mines Limited (TSXV- WEX) ("Win-Eldrich" or the "Company") announced that Golden Phoenix Minerals, Inc. (GPM) has agreed to reduce the amount of debt owed by the Company to GPM from $5.3 million to $4,231,925.19, payable in 49 equal payments beginning April 1, 2011, with 5.25% interest accruing from that date, in consideration of the Company's assumption of certain debt obligations of GPM. The Company was originally required to make payments to GPM beginning in May 2010 with interest at U.S. prime plus 2% computed from April 1, 2009. This debt restructuring came as a result of agreements with Mr. Ripley, Mr. David Pearl II and, Mr. Earl Harrison, under which the Company agreed to assume $1,068,074 of GPM payments due to those individuals: $489,002 each to Ripley and Pearl; and $90,070 to Harrison. The $1,068,074 will be paid in 24 equal monthly installments beginning May 1, 2010. The amount due to Harrison will bear interest at 5.25% and the amounts due to Ripley and Pearl will be non-interest bearing. As a result of this restructuring, a portion of the Company's payments for the acquisition of GPM's interest in Ashdown has been deferred for 11 months.
In a separate move, the Company has appointed Kenneth Ripley as its fifth member of the Board of Directors and Mr. Earl Harrison as Vice President of Operations. Both Mr. Harrison and Mr. Ripley were instrumental in the financing, development, design, construction and operation of the Ashdown Molybdenum Mine and Mill, currently owned by the Ashdown Project LLC, a wholly owned subsidiary of the Company.
Perry Muller, President of Win-Eldrich, states "We are fortunate that Mr. Ripley and Mr. Harrison have agreed to join our team. Their proven ability, experience and prior knowledge of Ashdown coupled with the strong working relationship with our existing team will prove to be a valuable asset to our company as we move forward."
Production in 2008-2009 totaled 26,716 tons at an average recovered grade of 1.18% molybdenum. Based on the NI 43-101 technical report by Jonathan Sprecher (filed March 28, 2008), 89,784 tons of ore remain with an average recovered grade of 1.79% Mo per ton (3,216,758 lbs). The Company believes that a significant percentage of this remaining tonnage is contained in the south area of the Sylvia block. This block contained 47,602 tons of proven reserves with an average grade of 2.91% (2,773,908 lbs) as of January 1, 2008. The current focus of mine development is the reserves remaining in this block.
Pete Winn, a director of Win-Eldrich, is the qualified person as defined in NI 43-101 who reviewed and approved the technical information in this press release.
This news release includes certain forward-looking information and forward-looking statements (collectively "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. Specifically, this news release includes forward-looking statements regarding the existence and future development of the reserves in the Sylvia block of the Ashdown Project. 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 increase in production levels at the Ashdown mine. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such forward-looking statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied 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 applicable law.
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SOURCE WIN-ELDRICH MINES LIMITED
For further information: For further information: Perry Muller, President and Director of Win-Eldrich, at (402) 435-7206