-- Published: Thursday, 25 June 2015 | Print | Disqus
VANCOUVER, BC--(Marketwired - June 25, 2015) - INCA ONE GOLD CORP. (TSX VENTURE: IO)("Inca One" or the "Company") is pleased to announce that the Company's wholly owned Peruvian subsidiary, Chala One SAC ("Chala One" or the "Chala Plant"), is now producing at 100 tonnes per utilization day ("TPUD" -- see Utilization Reporting below).
This recent two week production period included ten days of production at or in excess of 100 TPUD and two days of production at lower levels for scheduled maintenance. The Company intends to continue to maximize production and operational efficiencies and operate as close to production capacity as possible.
The Company continues to focus on mineral purchasing and increasing the tonnage of materials in its stockpiles in order to sustain a 100 TPUD operating rate, while at the same time focusing on production levels and recoveries.
"With this milestone now reached I would like to thank the Peruvian operating team for achieving sustained operations at the Chala Plant, meeting our timing and accomplishing the production level we set out," said Edward Kelly, Inca One's President and CEO. "We are also very happy with the consistent progress in scaling up our mineral purchasing activities, and recently achieving new highs both in weekly tonnes of mineral acquisition, along with plant throughput. With this increase in mineral purchasing and inventory levels, and for some strategic capital investments, we have also secured an additional USD$500,000 in financing."
To harmonize reporting between publicly listed mineral processing / toll-milling operations, and to adjust for reasonable production down-time each month, the Company will be reporting production TPUD based on 342 available production days ("utilization days") per year or approximately 28.5 utilization days per month. Reasonable production down-time for toll-milling companies may include reduced production or non-operating hours arising from maintenance, harvesting, seasonal factors, and routine shut-downs. The Company will evaluate this utilization base on a regular basis to ensure its reasonability.
The Company has also arranged a non-brokered debenture financing (the "Debenture Financing") consisting of up to 20 units (the "Units"), with each Unit comprising one non-convertible debenture (the "Debentures") in the principal amount of USD$25,000, and 25,000 non-transferable warrants (the "Warrants"). Each Warrant will be exercisable into one common share of the Company at a price of CAD$0.25 until a date that is 12 months from the closing date of the Debenture Financing. The holders of the Debentures will be entitled to receive interest at the rate of 14% per annum, calculated and paid quarterly in arrears. The term of the Debentures is 12 months with a 12 month extension at the option of the Company. A finder's fee of 5% of the gross proceeds of the Debenture Financing will be payable in cash by the Company to certain finders (the "Finder"). The Debentures will be secured by a security interest in certain of the Company's present and after acquired property to be registered in British Columbia.
The net proceeds from the Debenture Financing will be used to fund the purchase of strategic capital additions such as a desorption plant, to retire certain higher interest maturing debts, and for general working capital purposes, as applicable.
The Debenture Financing including the issuance of the Warrants remains subject to TSX Venture Exchange acceptance and the execution of definitive agreements. The Debenture Financing is expected to close in June 2015.
About Inca One
Inca One is a Canadian-based mineral processing company with a gold milling facility in Peru, servicing government-permitted small-scale miners. As part of the terms of the original purchase agreement for the Chala, Peru processing facility, Inca One has an agreement between its wholly owned subsidiary, Chala One SAC, and the seller and initial permit applicant, to operate under the umbrella of formalization until the successful completion of all the environmental and operating permits. Peru, a highly mineral-rich country, is one of the world's top producers of gold, silver, copper and zinc, with substantial production coming from small scale miners who need government permitted milling facilities to process their mineral (such as the Company's Chala Plant).
On behalf of the Board,
President & CEO
INCA ONE GOLD CORP.
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 NEWS RELEASE.
Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that the Company has limited operating experience with its Chala plant and future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements.
This news release deals only with the Company's Chala plant, which is an industrial project. This presentation does not deal at all with the Company's sole mineral exploration property, the Corizona property. Investors should note that no resource has been established on the Corizona property and all of the material currently being processed at the Chala plant is received from local small-scale mining operations.
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-- Published: Thursday, 25 June 2015 | E-Mail | Print | Source: GoldSeek.com