(BSNS WIRE) Sun River Mining Secures Extended Option to Purchase at Clav
Sun River Mining Secures Extended Option to Purchase at Clavo Rico, Honduras;
Advances Funding Effort, and Notes Favorable Impact of Recent Increase in Gold
Prices
Business Editors
DENVER--(BUSINESS WIRE)--Oct. 19, 1999--Sun River Mining, Inc.
(OTCBB:SUNR), is pleased to announce that recent negotiations with
Compania Minera Cerros del Sur, S. de R.L. de C.V. in Honduras have
resulted in the restructuring and extension of the option to purchase
Minera Cerros del Sur and its principal assets, the mineral
concessions and gold mine at Clavo Rico, Choluteca Department,
Honduras. The new option allows Sun River until January 17, 2000 to
secure the necessary funds, and requires subsequent payment of the
purchase price by Sun River in two installments.
Efforts on completing the funding agreement and documents
necessary for securing financing for the purchase and planned
development program have advanced significantly, and are now nearing
completion.
Sun River's economic projections for Clavo Rico, based on the
recently completed drilling program, were generated utilizing a price
of US$255.00 per ounce for gold and indicated a very satisfactory
return on investment and profit potential for the project. However,
should the recent rally in gold prices to greater than US$300.00 per
ounce prove to be indicative of future prices, a considerably improved
payback and return on investment would be realized. Vice President of
Exploration and Mining Joseph R. Wojcik stated that "at $300/ounce or
above, projected net profit would increase by over 50%."
Company management is encouraged by the renewed progress on the
Clavo Rico project as well as the improved market conditions, and
hopes that this will allow the pending funding and purchase efforts to
proceed more vigorously.
Additional information regarding Sun River is available on the
Company's web site at www.sunrivermining.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Steven R. Davis
President & CEO
Sun River Mining, Inc.
350 Indiana St., Suite 800
Golden, CO 80401
Tele: 303/384-3415
--30--ac/sf*
CONTACT: Sun River Mining, Inc.
Steven R. Davis, 303/674-3071
geosrdavis@att.net
|
