STBY whoa, check it out, a ton of buying coming in right now....29 not going to last long IMO.
Delayed reaction to this news, which will add revenues...
Stansbury Holdings Corporation Announces That It Has Entered Into a
Definitive Agreement to Acquire the Sweetwater Garnet Mine and Mill Near
Dillon, Montana
DENVER, June 22 /PRNewswire/ -- Stansbury Holdings Corporation (OTC Bulletin Board: STBY - news) announced today that it and Absolut Resources Corp
(CDNX: ALR - news), a Canadian corporation, have entered into a Definitive Agreement whereby Stansbury would acquire Sweetwater Garnet, Inc. (an indirect
subsidiary of Absolut) in a stock for stock exchange. The purchase is subject to the approval of the boards of both Stansbury and Absolut, upon the approval of the
shareholders of Absolut, and upon certain regulatory approvals in Canada.
If the requisite approvals are obtained as anticipated, closing would on or about August 1st of this year. The Definitive Agreement will allow Stansbury to begin
operation of the Garnet Mine and Mills under contract to Sweetwater Garnet, Inc., pending closing.
The Definitive Agreement provides that Stansbury will be issuing 12,240,000 shares of its common stock to Absolute Resources in exchange for 100% of the issued
and outstanding shares of Sweetwater Garnet, Inc. In addition, Stansbury will be retiring $1,000,000 of indebtedness of Sweetwater Garnet, Inc., with 3,000,000
shares of its common stock and a production royalty. Sweetwater Garnet will be essentially debt free upon closing. The book value of the Sweetwater garnet mine
and mill reflect a capital investment in the garnet project of over 7,000,000 Canadian dollars.
Sweetwater Garnet, Inc., a Nevada corporation qualified to do business in Montana, is the owner of an 1860 acre lease in Madison County, Montana, upon which
a garnet concentrating mine and mill are located, and also the owner in fee of a finishing mill located on four acres in Beaverhead County, Montana, about six miles
south of the town of Dillon, Montana, adjacent to Interstate 15 and a rail siding.
The garnet facilities have a capacity of at least 12,000 tons per year of finished garnet, which in the past has been sold to the abrasives and water treatment
industries. With modest expenditures, the mine and two mills can be increased to 20,000 tons per year output, which represents 20% of current worldwide demand.
Industrial grade garnet, used in the abrasives industry, and in water-jet cutting and water treatment facilities, sells generally for $180 to $225 per ton, depending on
size. The facilities of Sweetwater Garnet, Inc., produce the full suite of sizes used in industry. The known ore body covers an extensive area from the surface to an
average depth of nine feet, with an estimated resource able to supply 16 years of ore to the mills at a production rate of 20,000 tons of finished garnet per year.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters covered by such
forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements
of Stansbury Holdings Corporation to differ materially from those contemplated or implied by such forward-looking statements.
Stansbury Holdings Corporation is a natural resource holding company, whose website is www.stansburyholdings.com .
SOURCE: Stansbury Holdings Corporation |
