To: LoneClone who wrote (1873 ) 12/7/2017 1:53:11 PM From: pstad60 Read Replies (1) | Respond to LoneClone,coregoldinc.com " it plans to spend $4m upgrading its production facility (even though the real plant bottleneck is the fact it can’t get its rock out the ground quick enough) " ..... The company has already started mining from 5 small open pit mines at the Cerro Verde area of Dynasty Goldfields. Perhaps the bottleneck is The Iguana Veins are a few kilometers to the north-east of current open pit operations. The Iguana Veins hold a resource of well over 1 million tonnes in measured, indicated and inferred resources. (367,000 tonnes @ 6.0 gpt in measured and 463,000 tonnes @ 5.9 gpt in indicated). Not sure how much is mineable by open pit but there is near surface mineralization. coregoldinc.com coregoldinc.com Resolution of working capital issue of Elipe S.A. Elipe S.A. (“Elipe”), the Company’s wholly owned subsidiary, has experienced financial distress due to the level of payables and other liabilities (which includes, among other things, supplier payables, government payables and payroll remittances). The Company has been in extensive negotiations with the liability holder’s government appointed representative (the “Representative”) as part of its commitment to normalizing payables and stabilizing operations. If the Company does not rectify the situation in a timely manner, there is a risk that the Representative may take legal action against Elipe which may involve, among other things, dispositions of assets in order to fund outstanding liabilities. Since the change in management in September 2016 (see press release on September 12, 2016), new management has focused its efforts to rectify the situation with the Representative. On June 1, 2017, the Company signed a payment plan contract (“Payment Plan Contract”) with the Representative to improve Elipe’s financial condition. The Payment Plan Contract allows the Company’s Ecuadorian subsidiary to continue to conduct its mining operations and postpone any actions by the Representative against its assets provided Elipe funds various outstanding liabilities on the following schedule: Date Payment (US$) Initiation of Payment Plan Contract $100,000 (paid) July - August 2017 $500,000 per month September - October 2017 $550,000 per month November - December 2017 $600,000 per month January - March 2018 $650,000 per month April - May 2018 $700,000 per month June 2018 $3,800,000 Total $10,550,000
