HENDERSON, NV–(Marketwired – March 01, 2016) – Firma Holdings Corp. (OTC: FRMA) is pleased to announce that on February 17, 2016, through its wholly owned subsidiary, American Metal Mining, S.A. de C.V., the company purchased and took control of the Magistral Del Oro tailings project, which is located in what is known as the "Golden Triangle" in Santa Maria Del Oro, Durango, Mexico.
The acquisition includes a 500 TPD Dynamic Cyanide counter current system plant. Contruction of the plant was completed in 2013, for approximately $4.5 million. It is unencumbered, fully permitted, is production ready, and is in excellent condition. The Magistral project includes the exclusive rights to process approximately 1.2 million tonnes of mineralized mill tailings, grading an average of 2.06 gold per tonne (79,000 ounces of gold).
Mr. Francis Biscan Jr., President of Firma Holdings Corp., stated, "We feel very fortunate to have secured this opportunity. With a project that has been advanced to the degree of Magistral, being fully permitted, with all the metallurgical work completed by a reputable firm, such as Kappes Cassiday, it is a very rare find for our company. Additionally, because of the way we were able to restructure various elements of the project, we have created a project that can be very attractive to a JV Partner or a direct funder. We believe the mining sector is looking for low cost production over exploration and we would attribute that to the interest from multiple groups that are actively engaged in due diligence and the desire to make an offer to partner with us in the production of Magistral. The ability for a project to be in production within a 120 days of funding, adds to interest and motivation to drive an attractive deal."
"Cash flow will enable us to organically advance our other projects. In addition, it can position us to capitalize on the great opportunities that are beginning to present themselves in a beaten down sector. Magistral is one example of future potential opportunities, and the ability of our President of Mexico operations, Ramiro Trevizo, to find tremendous projects."
Mr. Ramiro Trevizo, President of Mexican Operations, stated, "My vision is to use the cash flow from this project to advance the great possibilities we hold in our Don Roman and Picacho projects. As a result of the challenges and changes in the mining sector, over the last couple of years, I believe this project can position us to capitalize on some of the great opportunities that I am beginning to see in the market place."
The terms of the transaction required Firma to pay a nominal price and assume a structured accounts payable and environmental remediation obligation of approximately $1,440,000. Firma is required to pay a per-tonne royalty to the local ejido government as material is processed. Based on an $1,100 spot gold price, the royalty is currently set at $3 per tonne. Going forward, the royalty adjusts by the percentage of change that the spot gold price increases or decreases. The fee is calculated monthly, using a previous thirty day average of the spot gold price.
A comprehensive report, including a metallurgical assessment of the mineralized tailings, was completed by Kappes Cassiday and Associates, an independent mining engineering firm, which confirmed recovery rates of approximately 82%. During Firma's pre-purchase due diligence, a volume and grade value report was commissioned and provided, which validated expected grade and tonnage. Additionally, to confirm previous metallurgical results, a report was commissioned and completed by two different Mexican based Metallurgical Engineering companies, with both company's reports confirming previous grade, process, and recovery results.
About Firma Holdings Corp. (http://www.FirmaHoldings.com)
Firma currently holds three wholly owned subsidiaries, focused on; mining, technology, and development and production of food products.
GRACEPOINT MINING CORP: Firma Holdings currently owns Three mining projects that encompass over 45,000 acres in Mexico. The 100% owned Don Roman district has 70+ distinct structures identified within 8 km diameter of a 100% owned centralized processing mill. The 100% owned Picacho group has 9 gold-bearing veins over 4 mineralized target areas with an aggregate vein strike length of over 10.8 km. The Magistral project includes the exclusive rights to process approximately 1.2 million tonnes of mineralized mill tailings, grading an average of 2.06 gold per tonne (79,000 ounces of gold), and is in close proximity to the 100% owned 500 TPD Dynamic Cyanide counter current system plant.
SMARTPAC GLOBAL CORP: Holds intellectual property for the preservation and protection of fresh fruit, vegetables and flowers during extended periods of shipping and storage. The packaging assets are comprised of patents, trademarks and other intellectual property in the United States, Europe, Mexico, Canada, South Africa, Japan, and Chile regarding system and method for packaging of bulk quantities of fresh produce and flowers incorporating modified atmosphere packaging. These assets also include patents throughout the world regarding the active treatment of modified atmosphere packaging.
SICILIAN SUN FOODS: With production halted, Sicilian Sun is currently looking at restructuring opportunities.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Please read the full disclaimer at www.FirmaHoldings.com.
Contact:
David Barefoot
(888) 901-4550
[email protected]
Original Article: http://www.marketwired.com/press-release/firma-acquires-fully-permitted-magistral-tailings-project-2101684.htm
