Standard Tolling Announces Ore Purchase Contracts
White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) announces it has signed long term ore purchase contracts totaling approximately 80% of the plant’s expected capacity of 100 TPD. This equates to approximately 2,300 tons per month with grades ranging from 15 g to 1 oz per ton. The Company intends to start taking delivery of ore in short order as it looks to commence stockpiling efforts required for the intended plant start-up scheduled for mid to late June. The Company will make full payment to the customer upon delivery of the ore, after all sampling, chemical and metallurgical tests take place.
The ore will be purchased using funds from the US$2,250,000 private placement of units (the “Debt Offering”) as announced on March 6, 2015. The first tranche of the Debt Offering closed on March 25, 2015 and totaled US$1,004,000. The Company expects additional closings including the second tranche later this week.
The ore purchase contracts are with government permitted small-scale miners and formal mining companies permitted under a Certificate of Mining. Certificate of Mining permits are government granted and often involve larger mining operations than those of the small-scale miner. These larger operations generally have a higher degree of organization, utilize more sophisticated mining techniques and equipment, and have a higher output per miner. Standard Tolling sees great value in these particular contracts as they can provide the added benefit of scale in the future, albeit at a lower grade. The Company has additional contracts under negotiation and is hopeful to have 100% of the plant capacity under contract prior to commencing operations. The Company is focused on providing ore processing services to the local mining communities of Northern Peru under the name of Mineros Unidos del Peru S.A.
Leonard Clough, CEO of the Company stated: “The execution of these ore contracts is another milestone event for the Company. To date, we have successfully raised the necessary equity to fund our capex plans, completed a first closing of debt financing established for ore purchases, executed ore purchase contracts for approximately 80% of throughput capacity, and have advanced completion of the plant in anticipation of a June start-up. Immediately prior to joining Standard Tolling, our senior operations team oversaw a facility 30 times larger than our Phase I capacity, so I feel confident that we also soon expand to the 350 TPD capacity in Phase II and take on new projects.”
About Standard Tolling Corp.
Standard Tolling is currently constructing a 100 TPD custom gold processing plant in order to service the local mining communities of Northern Peru. The Company will purchase ore from government permitted small-scale miners and formal mining companies permitted under a Certificate of Mining. The Company will then process the ore and sell gold dore. The plant is located within a prolific gold belt with close proximity to Rio Alto’s La Arena gold mine. The Company is well funded and is on track to commence operations at 100 TPD by late June 2015.
ON BEHALF OF THE BOARD
“Len Clough”
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Mr. Len Clough, Chairman, President, CEO and Director
For further information please contact:
Tel: 866-222-5820 ext 101 for John Martin
Email: info@standardtolling.com
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.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to statements about the Company’s ability to fund and execute the proven ore processing business model outlined in this news release. Although Standard Tolling believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/standardtolling04072015.pdf
Source: Standard Tolling Corp. (TSX Venture:TON, FWB:GA0) http://www.standardtolling.com/s/Home.asp
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