Bendito Resources Inc. is pleased to announce that it has entered into a Membership Interest Purchase Agreement with Waterton Nevada Splitter, LLC and Waterton Nevada Splitter II, LLC pursuant to which Bendito will acquire (from the Vendor 100% of Mt Hamilton LLC, the owner of the Mt. Hamilton gold and silver project located in White Pine County, Nevada, USA. The Mt. Hamilton Project is a fully permitted project with a historical measured and indicated mineral resource of 828,000 gold equivalent ounces and an inferred mineral resource of 136,000 gold equivalent ounces1. It also boasts numerous exploration targets and expansion potential within the district from the Monte Cristo, Chester, and Shell prospects. Following the closing of the Transaction, the Company intends to prepare an updated feasibility study on the Mt. Hamilton Project.
John Antwi, President and CEO of Bendito, commented, “We are excited to continue advancing our vision of creating a company with a diversified portfolio of assets to meet the dynamics of the metals market by acquiring a permitted pre-production project in Nevada that we believe will provide near-term cash flows. We plan to systematically advance the project to a construction decision and are looking forward to providing a more detailed overview of the project timeline and potential upside opportunities after the closing of the Transaction.”
Paul Huet, Board Chairman of Bendito, commented, “We have done this before, and we will do it again. We have built and produced precious metals in these Tier 1 jurisdictions in Nevada. Mt. Hamilton is indeed a strategic acquisition for Bendito with obvious value metrics for an emerging international exploration and development Company.”
Key terms of the Purchase Agreement:
Completion of the Transaction is subject to satisfaction of customary conditions, including receipt of all required third-party consents and regulatory approvals.
Advisors and Counsel
Haywood Securities Inc. is acting as the financial advisor to Bendito in respect of the Transaction. Bendito retained Bennett Jones LLP as Canadian legal counsel and Dorsey & Whitney LLP as U.S. legal counsel in connection with the Transaction.
About Mt. Hamilton Project
The fully permitted Mt. Hamilton Project is situated approximately fifty miles west of the mining town of Ely, Nevada, and is located within the prolific Battle Mountain Trend, a world-class, Tier 1 mining jurisdiction. The Mt. Hamilton Project currently has major permitting, power, and water infrastructure secured to commence construction and operations, and is anticipated to receive government and community support. Gold-silver (Au-Ag) mineralization occurs via typical epithermal/Carlin mineralization that is lithologically and structurally controlled and overprints polymetallic mineralization hosted in skarn/hornfels units. Per Table 12, the historical mineral resource consists of Measured and Indicated resources of 727 kozs Au and 6,569 kozs Ag, and Inferred resources of 119 kozs Au and 1,153 kozs Ag. The numerous resource exploration targets also include historically identified tungsten and molybdenum mineralization, of which tungsten has been designated as a critical mineral.
Table 1 – Mt. Hamilton Historical Mineral Resource Estimate3
Resource Category |
Tons | Au Grade |
Ag Grade |
AuEq Grade | Contained Ounces | |||
(thousands of oz) | ||||||||
(000’s) | oz/t | oz/t | oz/t | g/tonne | Au | Ag | AuEq | |
Measured | 1,427 | 0.030 | 0.209 | 0.033 | 1.125 | 42 | 299 | 47 |
Indicated | 32,283 | 0.021 | 0.194 | 0.024 | 0.830 | 685 | 6,271 | 782 |
Measured
and |
33,710 | 0.022 | 0.195 | 0.025 | 0.843 | 727 | 6,569 | 828 |
Inferred | 6,721 | 0.018 | 0.171 | 0.020 | 0.696 | 119 | 1,153 | 136 |
Source: SRK, 2014 | ||||||||
• | Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources estimated will be converted into Mineral Reserves estimate; | |||||||
• | Resources stated as contained within a potentially economically minable open pit; pit optimization was based on assumed gold and silver prices of US$1,300/oz and US$19.60/oz, respectively, block-by-block modeled recovery averaging 76% for Au and 39% for Ag, an ore mining cost of US$2.06/t for Seligman, an ore mining cost of US$1.64/t for Centennial and an ore processing cost of US$4.95/t; west pit slopes 45°, east pit slopes of 50°; | |||||||
• | Resources are reported using a 0.006 oz/t contained gold CoG; | |||||||
• | AuEq was calculated using a Ag:Au ratio of 65:1; and, | |||||||
• | Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding. |
Qualified Persons
Allan Schappert, CPG, RM-SME, Principal Resource Geologist, ALS Geo Resources LLC, has reviewed the scientific and technical information contained in this news release. Allan Schappert is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101.
About Bendito Resources Inc.
Bendito Resources Inc. is a private mineral resource company formed and led by experienced mining and exploration executives headquartered in Reno, Nevada, USA, and with regional offices in Hermosillo, Sonora, Mexico. The Company fully owns a portfolio of diversified mineral projects in Mexico, including the Alacrán and Oposura projects, both of which have historically reported mineral resources. The Company has executed a definitive agreement in respect of the Transaction to acquire the Mt. Hamilton Project in Nevada, USA.
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