Star Mountain Resources Subsidiary Secures $500,000 Loan From a New York Public Benefit Trust
05.04.2016 | Marketwire
TEMPE, Apr 5, 2016 - Star Mountain Resources Inc. (OTC: SMRS) (the "Company") announced today that its wholly owned subsidiary, St. Lawrence Zinc Company, LLC, issued a promissory note in the aggregate principal amount of $500,000 to the Development Authority of the North Country ("DANC"), a New York public benefit trust.Joe Marchal, Chief Executive Officer of Star Mountain Resources, stated, "We are appreciative to the Development Authority of the North Country for this financing. We consider this one of many partnerships in our plan to re-commence operations at the Balmat Mine. The Industry Guide 7 Report that was released on the Balmat Mine in February 2016, combined with the increase in zinc prices over the last 4 months, has led to several financial and operating options being presented to us for our consideration."
The material terms of the note we issued to DANC include the following:
- Principal amount: $500,000.
- Interest rate: 2.25% per annum, payable monthly beginning April 1, 2016.
- Due date: April 1, 2017.
The loan has been guaranteed by the Company and its wholly owned subsidiaries Northern Zinc, LLC and Balmat Holding Corp., in addition to St. Lawrence's grant of a security interest in certain of its machinery and equipment as well as its right, title and interest to conduct mineral mining operations and to process and transport such minerals located on lands owned or leased by St. Lawrence in the towns of Fowler, Edwards, and Pierrepont located in St. Lawrence County, New York.
Joe Marchal, Chief Executive Officer of Star Mountain Resources, stated, "The recent rebound in zinc prices along with a strengthening world-wide economy validates our decision in November 2015 to acquire the Balmat zinc mine at a deeply discounted price and its 585,000 tons of proven and probable reserves of 9.2% grade zinc plus the mineralized material adjacent to the current reserves that in all likelihood will be reclassified to reserve status as the mine progresses. These factors are enabling us to continue to prepare the mine for operations and start putting it back into production while we seek funding."
About Us
Star Mountain Resources Inc. is a junior exploration and mining company focused on acquiring and consolidating mining claims, mineral leases, producing mines, and historic mines with production and future growth potential. Operations of the company are currently focused on base metal and precious metal mining acquisitions in North America, and re-commencing mining activities at the Balmat Zinc mine in upstate New York. For additional information visit www.starmountainresources.com
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to our ability to commence mining operations, ore prices and future business or financial results) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.